103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2857

 

Introduced 2/16/2023, by Rep. Ryan Spain

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Finance Authority Act. Changes the definition of "clean energy". Amends the Illinois Power Agency Act. Changes the definitions of "clean energy", "community renewable generation project", "distributed renewable energy generation device", and "renewable energy resources". Provides that the long-term renewable resources procurement plan shall include the procurement of renewable energy credits from new projects in amounts equal to at least 10,000,000 renewable energy credits delivered annually by the end of the 2021 delivery year, and increasing ratably to reach 45,000,000 renewable energy credits delivered annually from new wind, solar, and other renewable energy resources (rather than just new wind and solar) projects by the end of delivery year 2030 such that the goals are met 75% (rather than entirely) by procurements of renewable energy credits from new wind and photovoltaic projects and 25% by other renewable energy resources such that the State maintains a sufficient, diverse, reliable, and cost effective renewable energy resources mix. Provides that the self-direct credit amount for each renewable energy credit supplied shall be determined annually and is equal to the lower of the volumetric charge collected pursuant to the recovery of costs associated with the provision of delivery and other services to support the renewable portfolio or the average price paid per renewable energy credit divided by 1,000 for all utility-scale renewable energy credits procured by the Illinois Power Agency after June 1, 2017. Removes a provision that provides that the self-direct credit amount does not include costs associated with any contracts entered into before the delivery year in which the customer files the initial compliance report to be eligible for participation in the self-direct program. Amends the Community Energy, Climate, and Jobs Planning Act. Changes the definition of "renewable energy resources". Amends the Public Utilities Act. Changes the definition of "eligible renewable electrical generating facility". Amends the Environmental Protection Act. Changes the definitions of "clean energy" and "large greenhouse gas-emitting unit". Effective immediately.


LRB103 25518 AMQ 51867 b

 

 

A BILL FOR

 

HB2857LRB103 25518 AMQ 51867 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Finance Authority Act is amended
5by changing Section 801-10 as follows:
 
6    (20 ILCS 3501/801-10)
7    Sec. 801-10. Definitions. The following terms, whenever
8used or referred to in this Act, shall have the following
9meanings, except in such instances where the context may
10clearly indicate otherwise:
11    (a) The term "Authority" means the Illinois Finance
12Authority created by this Act.
13    (b) The term "project" means an industrial project, clean
14energy project, conservation project, housing project, public
15purpose project, higher education project, health facility
16project, cultural institution project, municipal bond program
17project, PACE Project, agricultural facility or agribusiness,
18and "project" may include any combination of one or more of the
19foregoing undertaken jointly by any person with one or more
20other persons.
21    (c) The term "public purpose project" means (i) any
22project or facility, including without limitation land,
23buildings, structures, machinery, equipment and all other real

 

 

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1and personal property, which is authorized or required by law
2to be acquired, constructed, improved, rehabilitated,
3reconstructed, replaced or maintained by any unit of
4government or any other lawful public purpose, including
5provision of working capital, which is authorized or required
6by law to be undertaken by any unit of government or (ii) costs
7incurred and other expenditures, including expenditures for
8management, investment, or working capital costs, incurred in
9connection with the reform, consolidation, or implementation
10of the transition process as described in Articles 22B and 22C
11of the Illinois Pension Code.
12    (d) The term "industrial project" means the acquisition,
13construction, refurbishment, creation, development or
14redevelopment of any facility, equipment, machinery, real
15property or personal property for use by any instrumentality
16of the State or its political subdivisions, for use by any
17person or institution, public or private, for profit or not
18for profit, or for use in any trade or business, including, but
19not limited to, any industrial, manufacturing, clean energy,
20or commercial enterprise that is located within or outside the
21State, provided that, with respect to a project involving
22property located outside the State, the property must be
23owned, operated, leased or managed by an entity located within
24the State or an entity affiliated with an entity located
25within the State, and which is (1) a capital project or clean
26energy project, including, but not limited to: (i) land and

 

 

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1any rights therein, one or more buildings, structures or other
2improvements, machinery and equipment, whether now existing or
3hereafter acquired, and whether or not located on the same
4site or sites; (ii) all appurtenances and facilities
5incidental to the foregoing, including, but not limited to,
6utilities, access roads, railroad sidings, track, docking and
7similar facilities, parking facilities, dockage, wharfage,
8railroad roadbed, track, trestle, depot, terminal, switching
9and signaling or related equipment, site preparation and
10landscaping; and (iii) all non-capital costs and expenses
11relating thereto or (2) any addition to, renovation,
12rehabilitation or improvement of a capital project or a clean
13energy project, or (3) any activity or undertaking within or
14outside the State, provided that, with respect to a project
15involving property located outside the State, the property
16must be owned, operated, leased or managed by an entity
17located within the State or an entity affiliated with an
18entity located within the State, which the Authority
19determines will aid, assist or encourage economic growth,
20development or redevelopment within the State or any area
21thereof, will promote the expansion, retention or
22diversification of employment opportunities within the State
23or any area thereof or will aid in stabilizing or developing
24any industry or economic sector of the State economy. The term
25"industrial project" also means the production of motion
26pictures.

 

 

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1    (e) The term "bond" or "bonds" shall include bonds, notes
2(including bond, grant or revenue anticipation notes),
3certificates and/or other evidences of indebtedness
4representing an obligation to pay money, including refunding
5bonds.
6    (f) The terms "lease agreement" and "loan agreement" shall
7mean: (i) an agreement whereby a project acquired by the
8Authority by purchase, gift or lease is leased to any person,
9corporation or unit of local government which will use or
10cause the project to be used as a project as heretofore defined
11upon terms providing for lease rental payments at least
12sufficient to pay when due all principal of, interest and
13premium, if any, on any bonds of the Authority issued with
14respect to such project, providing for the maintenance,
15insuring and operation of the project on terms satisfactory to
16the Authority, providing for disposition of the project upon
17termination of the lease term, including purchase options or
18abandonment of the premises, and such other terms as may be
19deemed desirable by the Authority, or (ii) any agreement
20pursuant to which the Authority agrees to loan the proceeds of
21its bonds issued with respect to a project or other funds of
22the Authority to any person which will use or cause the project
23to be used as a project as heretofore defined upon terms
24providing for loan repayment installments at least sufficient
25to pay when due all principal of, interest and premium, if any,
26on any bonds of the Authority, if any, issued with respect to

 

 

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1the project, and providing for maintenance, insurance and
2other matters as may be deemed desirable by the Authority.
3    (g) The term "financial aid" means the expenditure of
4Authority funds or funds provided by the Authority through the
5issuance of its bonds, notes or other evidences of
6indebtedness or from other sources for the development,
7construction, acquisition or improvement of a project.
8    (h) The term "person" means an individual, corporation,
9unit of government, business trust, estate, trust, partnership
10or association, 2 or more persons having a joint or common
11interest, or any other legal entity.
12    (i) The term "unit of government" means the federal
13government, the State or unit of local government, a school
14district, or any agency or instrumentality, office, officer,
15department, division, bureau, commission, college or
16university thereof.
17    (j) The term "health facility" means: (a) any public or
18private institution, place, building, or agency required to be
19licensed under the Hospital Licensing Act; (b) any public or
20private institution, place, building, or agency required to be
21licensed under the Nursing Home Care Act, the Specialized
22Mental Health Rehabilitation Act of 2013, the ID/DD Community
23Care Act, or the MC/DD Act; (c) any public or licensed private
24hospital as defined in the Mental Health and Developmental
25Disabilities Code; (d) any such facility exempted from such
26licensure when the Director of Public Health attests that such

 

 

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1exempted facility meets the statutory definition of a facility
2subject to licensure; (e) any other public or private health
3service institution, place, building, or agency which the
4Director of Public Health attests is subject to certification
5by the Secretary, U.S. Department of Health and Human Services
6under the Social Security Act, as now or hereafter amended, or
7which the Director of Public Health attests is subject to
8standard-setting by a recognized public or voluntary
9accrediting or standard-setting agency; (f) any public or
10private institution, place, building or agency engaged in
11providing one or more supporting services to a health
12facility; (g) any public or private institution, place,
13building or agency engaged in providing training in the
14healing arts, including, but not limited to, schools of
15medicine, dentistry, osteopathy, optometry, podiatry, pharmacy
16or nursing, schools for the training of x-ray, laboratory or
17other health care technicians and schools for the training of
18para-professionals in the health care field; (h) any public or
19private congregate, life or extended care or elderly housing
20facility or any public or private home for the aged or infirm,
21including, without limitation, any Facility as defined in the
22Life Care Facilities Act; (i) any public or private mental,
23emotional or physical rehabilitation facility or any public or
24private educational, counseling, or rehabilitation facility or
25home, for those persons with a developmental disability, those
26who are physically ill or disabled, the emotionally disturbed,

 

 

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1those persons with a mental illness or persons with learning
2or similar disabilities or problems; (j) any public or private
3alcohol, drug or substance abuse diagnosis, counseling
4treatment or rehabilitation facility, (k) any public or
5private institution, place, building or agency licensed by the
6Department of Children and Family Services or which is not so
7licensed but which the Director of Children and Family
8Services attests provides child care, child welfare or other
9services of the type provided by facilities subject to such
10licensure; (l) any public or private adoption agency or
11facility; and (m) any public or private blood bank or blood
12center. "Health facility" also means a public or private
13structure or structures suitable primarily for use as a
14laboratory, laundry, nurses or interns residence or other
15housing or hotel facility used in whole or in part for staff,
16employees or students and their families, patients or
17relatives of patients admitted for treatment or care in a
18health facility, or persons conducting business with a health
19facility, physician's facility, surgicenter, administration
20building, research facility, maintenance, storage or utility
21facility and all structures or facilities related to any of
22the foregoing or required or useful for the operation of a
23health facility, including parking or other facilities or
24other supporting service structures required or useful for the
25orderly conduct of such health facility. "Health facility"
26also means, with respect to a project located outside the

 

 

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1State, any public or private institution, place, building, or
2agency which provides services similar to those described
3above, provided that such project is owned, operated, leased
4or managed by a participating health institution located
5within the State, or a participating health institution
6affiliated with an entity located within the State.
7    (k) The term "participating health institution" means (i)
8a private corporation or association or (ii) a public entity
9of this State, in either case authorized by the laws of this
10State or the applicable state to provide or operate a health
11facility as defined in this Act and which, pursuant to the
12provisions of this Act, undertakes the financing, construction
13or acquisition of a project or undertakes the refunding or
14refinancing of obligations, loans, indebtedness or advances as
15provided in this Act.
16    (l) The term "health facility project", means a specific
17health facility work or improvement to be financed or
18refinanced (including without limitation through reimbursement
19of prior expenditures), acquired, constructed, enlarged,
20remodeled, renovated, improved, furnished, or equipped, with
21funds provided in whole or in part hereunder, any accounts
22receivable, working capital, liability or insurance cost or
23operating expense financing or refinancing program of a health
24facility with or involving funds provided in whole or in part
25hereunder, or any combination thereof.
26    (m) The term "bond resolution" means the resolution or

 

 

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1resolutions authorizing the issuance of, or providing terms
2and conditions related to, bonds issued under this Act and
3includes, where appropriate, any trust agreement, trust
4indenture, indenture of mortgage or deed of trust providing
5terms and conditions for such bonds.
6    (n) The term "property" means any real, personal or mixed
7property, whether tangible or intangible, or any interest
8therein, including, without limitation, any real estate,
9leasehold interests, appurtenances, buildings, easements,
10equipment, furnishings, furniture, improvements, machinery,
11rights of way, structures, accounts, contract rights or any
12interest therein.
13    (o) The term "revenues" means, with respect to any
14project, the rents, fees, charges, interest, principal
15repayments, collections and other income or profit derived
16therefrom.
17    (p) The term "higher education project" means, in the case
18of a private institution of higher education, an educational
19facility to be acquired, constructed, enlarged, remodeled,
20renovated, improved, furnished, or equipped, or any
21combination thereof.
22    (q) The term "cultural institution project" means, in the
23case of a cultural institution, a cultural facility to be
24acquired, constructed, enlarged, remodeled, renovated,
25improved, furnished, or equipped, or any combination thereof.
26    (r) The term "educational facility" means any property

 

 

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1located within the State, or any property located outside the
2State, provided that, if the property is located outside the
3State, it must be owned, operated, leased or managed by an
4entity located within the State or an entity affiliated with
5an entity located within the State, in each case constructed
6or acquired before or after the effective date of this Act,
7which is or will be, in whole or in part, suitable for the
8instruction, feeding, recreation or housing of students, the
9conducting of research or other work of a private institution
10of higher education, the use by a private institution of
11higher education in connection with any educational, research
12or related or incidental activities then being or to be
13conducted by it, or any combination of the foregoing,
14including, without limitation, any such property suitable for
15use as or in connection with any one or more of the following:
16an academic facility, administrative facility, agricultural
17facility, assembly hall, athletic facility, auditorium,
18boating facility, campus, communication facility, computer
19facility, continuing education facility, classroom, dining
20hall, dormitory, exhibition hall, fire fighting facility, fire
21prevention facility, food service and preparation facility,
22gymnasium, greenhouse, health care facility, hospital,
23housing, instructional facility, laboratory, library,
24maintenance facility, medical facility, museum, offices,
25parking area, physical education facility, recreational
26facility, research facility, stadium, storage facility,

 

 

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1student union, study facility, theatre or utility.
2    (s) The term "cultural facility" means any property
3located within the State, or any property located outside the
4State, provided that, if the property is located outside the
5State, it must be owned, operated, leased or managed by an
6entity located within the State or an entity affiliated with
7an entity located within the State, in each case constructed
8or acquired before or after the effective date of this Act,
9which is or will be, in whole or in part, suitable for the
10particular purposes or needs of a cultural institution,
11including, without limitation, any such property suitable for
12use as or in connection with any one or more of the following:
13an administrative facility, aquarium, assembly hall,
14auditorium, botanical garden, exhibition hall, gallery,
15greenhouse, library, museum, scientific laboratory, theater or
16zoological facility, and shall also include, without
17limitation, books, works of art or music, animal, plant or
18aquatic life or other items for display, exhibition or
19performance. The term "cultural facility" includes buildings
20on the National Register of Historic Places which are owned or
21operated by nonprofit entities.
22    (t) "Private institution of higher education" means a
23not-for-profit educational institution which is not owned by
24the State or any political subdivision, agency,
25instrumentality, district or municipality thereof, which is
26authorized by law to provide a program of education beyond the

 

 

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1high school level and which:
2        (1) Admits as regular students only individuals having
3    a certificate of graduation from a high school, or the
4    recognized equivalent of such a certificate;
5        (2) Provides an educational program for which it
6    awards a bachelor's degree, or provides an educational
7    program, admission into which is conditioned upon the
8    prior attainment of a bachelor's degree or its equivalent,
9    for which it awards a postgraduate degree, or provides not
10    less than a 2-year program which is acceptable for full
11    credit toward such a degree, or offers a 2-year program in
12    engineering, mathematics, or the physical or biological
13    sciences which is designed to prepare the student to work
14    as a technician and at a semiprofessional level in
15    engineering, scientific, or other technological fields
16    which require the understanding and application of basic
17    engineering, scientific, or mathematical principles or
18    knowledge;
19        (3) Is accredited by a nationally recognized
20    accrediting agency or association or, if not so
21    accredited, is an institution whose credits are accepted,
22    on transfer, by not less than 3 institutions which are so
23    accredited, for credit on the same basis as if transferred
24    from an institution so accredited, and holds an unrevoked
25    certificate of approval under the Private College Act from
26    the Board of Higher Education, or is qualified as a

 

 

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1    "degree granting institution" under the Academic Degree
2    Act; and
3        (4) Does not discriminate in the admission of students
4    on the basis of race or color. "Private institution of
5    higher education" also includes any "academic
6    institution".
7    (u) The term "academic institution" means any
8not-for-profit institution which is not owned by the State or
9any political subdivision, agency, instrumentality, district
10or municipality thereof, which institution engages in, or
11facilitates academic, scientific, educational or professional
12research or learning in a field or fields of study taught at a
13private institution of higher education. Academic institutions
14include, without limitation, libraries, archives, academic,
15scientific, educational or professional societies,
16institutions, associations or foundations having such
17purposes.
18    (v) The term "cultural institution" means any
19not-for-profit institution which is not owned by the State or
20any political subdivision, agency, instrumentality, district
21or municipality thereof, which institution engages in the
22cultural, intellectual, scientific, educational or artistic
23enrichment of the people of the State. Cultural institutions
24include, without limitation, aquaria, botanical societies,
25historical societies, libraries, museums, performing arts
26associations or societies, scientific societies and zoological

 

 

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1societies.
2    (w) The term "affiliate" means, with respect to financing
3of an agricultural facility or an agribusiness, any lender,
4any person, firm or corporation controlled by, or under common
5control with, such lender, and any person, firm or corporation
6controlling such lender.
7    (x) The term "agricultural facility" means land, any
8building or other improvement thereon or thereto, and any
9personal properties deemed necessary or suitable for use,
10whether or not now in existence, in farming, ranching, the
11production of agricultural commodities (including, without
12limitation, the products of aquaculture, hydroponics and
13silviculture) or the treating, processing or storing of such
14agricultural commodities when such activities are customarily
15engaged in by farmers as a part of farming and which land,
16building, improvement or personal property is located within
17the State, or is located outside the State, provided that, if
18such property is located outside the State, it must be owned,
19operated, leased, or managed by an entity located within the
20State or an entity affiliated with an entity located within
21the State.
22    (y) The term "lender" with respect to financing of an
23agricultural facility or an agribusiness, means any federal or
24State chartered bank, Federal Land Bank, Production Credit
25Association, Bank for Cooperatives, federal or State chartered
26savings and loan association or building and loan association,

 

 

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1Small Business Investment Company or any other institution
2qualified within this State to originate and service loans,
3including, but without limitation to, insurance companies,
4credit unions and mortgage loan companies. "Lender" also means
5a wholly owned subsidiary of a manufacturer, seller or
6distributor of goods or services that makes loans to
7businesses or individuals, commonly known as a "captive
8finance company".
9    (z) The term "agribusiness" means any sole proprietorship,
10limited partnership, co-partnership, joint venture,
11corporation or cooperative which operates or will operate a
12facility located within the State or outside the State,
13provided that, if any facility is located outside the State,
14it must be owned, operated, leased, or managed by an entity
15located within the State or an entity affiliated with an
16entity located within the State, that is related to the
17processing of agricultural commodities (including, without
18limitation, the products of aquaculture, hydroponics and
19silviculture) or the manufacturing, production or construction
20of agricultural buildings, structures, equipment, implements,
21and supplies, or any other facilities or processes used in
22agricultural production. Agribusiness includes but is not
23limited to the following:
24        (1) grain handling and processing, including grain
25    storage, drying, treatment, conditioning, mailing and
26    packaging;

 

 

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1        (2) seed and feed grain development and processing;
2        (3) fruit and vegetable processing, including
3    preparation, canning and packaging;
4        (4) processing of livestock and livestock products,
5    dairy products, poultry and poultry products, fish or
6    apiarian products, including slaughter, shearing,
7    collecting, preparation, canning and packaging;
8        (5) fertilizer and agricultural chemical
9    manufacturing, processing, application and supplying;
10        (6) farm machinery, equipment and implement
11    manufacturing and supplying;
12        (7) manufacturing and supplying of agricultural
13    commodity processing machinery and equipment, including
14    machinery and equipment used in slaughter, treatment,
15    handling, collecting, preparation, canning or packaging of
16    agricultural commodities;
17        (8) farm building and farm structure manufacturing,
18    construction and supplying;
19        (9) construction, manufacturing, implementation,
20    supplying or servicing of irrigation, drainage and soil
21    and water conservation devices or equipment;
22        (10) fuel processing and development facilities that
23    produce fuel from agricultural commodities or byproducts;
24        (11) facilities and equipment for processing and
25    packaging agricultural commodities specifically for
26    export;

 

 

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1        (12) facilities and equipment for forestry product
2    processing and supplying, including sawmilling operations,
3    wood chip operations, timber harvesting operations, and
4    manufacturing of prefabricated buildings, paper, furniture
5    or other goods from forestry products;
6        (13) facilities and equipment for research and
7    development of products, processes and equipment for the
8    production, processing, preparation or packaging of
9    agricultural commodities and byproducts.
10    (aa) The term "asset" with respect to financing of any
11agricultural facility or any agribusiness, means, but is not
12limited to the following: cash crops or feed on hand;
13livestock held for sale; breeding stock; marketable bonds and
14securities; securities not readily marketable; accounts
15receivable; notes receivable; cash invested in growing crops;
16net cash value of life insurance; machinery and equipment;
17cars and trucks; farm and other real estate including life
18estates and personal residence; value of beneficial interests
19in trusts; government payments or grants; and any other
20assets.
21    (bb) The term "liability" with respect to financing of any
22agricultural facility or any agribusiness shall include, but
23not be limited to the following: accounts payable; notes or
24other indebtedness owed to any source; taxes; rent; amounts
25owed on real estate contracts or real estate mortgages;
26judgments; accrued interest payable; and any other liability.

 

 

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1    (cc) The term "Predecessor Authorities" means those
2authorities as described in Section 845-75.
3    (dd) The term "housing project" means a specific work or
4improvement located within the State or outside the State and
5undertaken to provide residential dwelling accommodations,
6including the acquisition, construction or rehabilitation of
7lands, buildings and community facilities and in connection
8therewith to provide nonhousing facilities which are part of
9the housing project, including land, buildings, improvements,
10equipment and all ancillary facilities for use for offices,
11stores, retirement homes, hotels, financial institutions,
12service, health care, education, recreation or research
13establishments, or any other commercial purpose which are or
14are to be related to a housing development, provided that any
15work or improvement located outside the State is owned,
16operated, leased or managed by an entity located within the
17State, or any entity affiliated with an entity located within
18the State.
19    (ee) The term "conservation project" means any project
20including the acquisition, construction, rehabilitation,
21maintenance, operation, or upgrade that is intended to create
22or expand open space or to reduce energy usage through
23efficiency measures. For the purpose of this definition, "open
24space" has the definition set forth under Section 10 of the
25Illinois Open Land Trust Act.
26    (ff) The term "significant presence" means the existence

 

 

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1within the State of the national or regional headquarters of
2an entity or group or such other facility of an entity or group
3of entities where a significant amount of the business
4functions are performed for such entity or group of entities.
5    (gg) The term "municipal bond issuer" means the State or
6any other state or commonwealth of the United States, or any
7unit of local government, school district, agency or
8instrumentality, office, department, division, bureau,
9commission, college or university thereof located in the State
10or any other state or commonwealth of the United States.
11    (hh) The term "municipal bond program project" means a
12program for the funding of the purchase of bonds, notes or
13other obligations issued by or on behalf of a municipal bond
14issuer.
15    (ii) The term "participating lender" means any trust
16company, bank, savings bank, credit union, merchant bank,
17investment bank, broker, investment trust, pension fund,
18building and loan association, savings and loan association,
19insurance company, venture capital company, or other
20institution approved by the Authority which provides a portion
21of the financing for a project.
22    (jj) The term "loan participation" means any loan in which
23the Authority co-operates with a participating lender to
24provide all or a portion of the financing for a project.
25    (kk) The term "PACE Project" means an energy project as
26defined in Section 5 of the Property Assessed Clean Energy

 

 

HB2857- 20 -LRB103 25518 AMQ 51867 b

1Act.
2    (ll) The term "clean energy" means energy generation that
3is substantially free (90% or more) of carbon dioxide
4emissions by design or operations, or that otherwise
5contributes to the reduction in emissions of environmentally
6hazardous materials or reduces the volume of environmentally
7dangerous materials, or that is generated by renewable energy
8resources as defined in the Illinois Power Agency Act.
9    (mm) The term "clean energy project" means the
10acquisition, construction, refurbishment, creation,
11development or redevelopment of any facility, equipment,
12machinery, real property, or personal property for use by the
13State or any unit of local government, school district, agency
14or instrumentality, office, department, division, bureau,
15commission, college, or university of the State, for use by
16any person or institution, public or private, for profit or
17not for profit, or for use in any trade or business, which the
18Authority determines will aid, assist, or encourage the
19development or implementation of clean energy in the State, or
20as otherwise contemplated by Article 850.
21    (nn) The term "Climate Bank" means the Authority in the
22exercise of those powers conferred on it by this Act related to
23clean energy or clean water, drinking water, or wastewater
24treatment.
25    (oo) "Equity investment eligible community" and "eligible
26community" mean the geographic areas throughout Illinois that

 

 

HB2857- 21 -LRB103 25518 AMQ 51867 b

1would most benefit from equitable investments by the State
2designed to combat discrimination. Specifically, the eligible
3communities shall be defined as the following areas:
4        (1) R3 Areas as established pursuant to Section 10-40
5    of the Cannabis Regulation and Tax Act, where residents
6    have historically been excluded from economic
7    opportunities, including opportunities in the energy
8    sector; and
9        (2) Environmental justice communities, as defined by
10    the Illinois Power Agency pursuant to the Illinois Power
11    Agency Act, where residents have historically been subject
12    to disproportionate burdens of pollution, including
13    pollution from the energy sector.
14    (pp) "Equity investment eligible person" and "eligible
15person" mean the persons who would most benefit from equitable
16investments by the State designed to combat discrimination.
17Specifically, eligible persons means the following people:
18        (1) persons whose primary residence is in an equity
19    investment eligible community;
20        (2) persons who are graduates of or currently enrolled
21    in the foster care system; or
22        (3) persons who were formerly incarcerated.
23    (qq) "Environmental justice community" means the
24definition of that term based on existing methodologies and
25findings used and as may be updated by the Illinois Power
26Agency and its program administrator in the Illinois Solar for

 

 

HB2857- 22 -LRB103 25518 AMQ 51867 b

1All Program.
2(Source: P.A. 101-610, eff. 1-1-20; 102-662, eff. 9-15-21.)
 
3    Section 10. The Illinois Power Agency Act is amended by
4changing Sections 1-10 and 1-75 as follows:
 
5    (20 ILCS 3855/1-10)
6    Sec. 1-10. Definitions.
7    "Agency" means the Illinois Power Agency.
8    "Agency loan agreement" means any agreement pursuant to
9which the Illinois Finance Authority agrees to loan the
10proceeds of revenue bonds issued with respect to a project to
11the Agency upon terms providing for loan repayment
12installments at least sufficient to pay when due all principal
13of, interest and premium, if any, on those revenue bonds, and
14providing for maintenance, insurance, and other matters in
15respect of the project.
16    "Authority" means the Illinois Finance Authority.
17    "Brownfield site photovoltaic project" means photovoltaics
18that are either:
19        (1) interconnected to an electric utility as defined
20    in this Section, a municipal utility as defined in this
21    Section, a public utility as defined in Section 3-105 of
22    the Public Utilities Act, or an electric cooperative as
23    defined in Section 3-119 of the Public Utilities Act and
24    located at a site that is regulated by any of the following

 

 

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1    entities under the following programs:
2            (A) the United States Environmental Protection
3        Agency under the federal Comprehensive Environmental
4        Response, Compensation, and Liability Act of 1980, as
5        amended;
6            (B) the United States Environmental Protection
7        Agency under the Corrective Action Program of the
8        federal Resource Conservation and Recovery Act, as
9        amended;
10            (C) the Illinois Environmental Protection Agency
11        under the Illinois Site Remediation Program; or
12            (D) the Illinois Environmental Protection Agency
13        under the Illinois Solid Waste Program; or
14        (2) located at the site of a coal mine that has
15    permanently ceased coal production, permanently halted any
16    re-mining operations, and is no longer accepting any coal
17    combustion residues; has both completed all clean-up and
18    remediation obligations under the federal Surface Mining
19    and Reclamation Act of 1977 and all applicable Illinois
20    rules and any other clean-up, remediation, or ongoing
21    monitoring to safeguard the health and well-being of the
22    people of the State of Illinois, as well as demonstrated
23    compliance with all applicable federal and State
24    environmental rules and regulations, including, but not
25    limited, to 35 Ill. Adm. Code Part 845 and any rules for
26    historic fill of coal combustion residuals, including any

 

 

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1    rules finalized in Subdocket A of Illinois Pollution
2    Control Board docket R2020-019.
3    "Clean coal facility" means an electric generating
4facility that uses primarily coal as a feedstock and that
5captures and sequesters carbon dioxide emissions at the
6following levels: at least 50% of the total carbon dioxide
7emissions that the facility would otherwise emit if, at the
8time construction commences, the facility is scheduled to
9commence operation before 2016, at least 70% of the total
10carbon dioxide emissions that the facility would otherwise
11emit if, at the time construction commences, the facility is
12scheduled to commence operation during 2016 or 2017, and at
13least 90% of the total carbon dioxide emissions that the
14facility would otherwise emit if, at the time construction
15commences, the facility is scheduled to commence operation
16after 2017. The power block of the clean coal facility shall
17not exceed allowable emission rates for sulfur dioxide,
18nitrogen oxides, carbon monoxide, particulates and mercury for
19a natural gas-fired combined-cycle facility the same size as
20and in the same location as the clean coal facility at the time
21the clean coal facility obtains an approved air permit. All
22coal used by a clean coal facility shall have high volatile
23bituminous rank and greater than 1.7 pounds of sulfur per
24million Btu btu content, unless the clean coal facility does
25not use gasification technology and was operating as a
26conventional coal-fired electric generating facility on June

 

 

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11, 2009 (the effective date of Public Act 95-1027).
2    "Clean coal SNG brownfield facility" means a facility that
3(1) has commenced construction by July 1, 2015 on an urban
4brownfield site in a municipality with at least 1,000,000
5residents; (2) uses a gasification process to produce
6substitute natural gas; (3) uses coal as at least 50% of the
7total feedstock over the term of any sourcing agreement with a
8utility and the remainder of the feedstock may be either
9petroleum coke or coal, with all such coal having a high
10bituminous rank and greater than 1.7 pounds of sulfur per
11million Btu content unless the facility reasonably determines
12that it is necessary to use additional petroleum coke to
13deliver additional consumer savings, in which case the
14facility shall use coal for at least 35% of the total feedstock
15over the term of any sourcing agreement; and (4) captures and
16sequesters at least 85% of the total carbon dioxide emissions
17that the facility would otherwise emit.
18    "Clean coal SNG facility" means a facility that uses a
19gasification process to produce substitute natural gas, that
20sequesters at least 90% of the total carbon dioxide emissions
21that the facility would otherwise emit, that uses at least 90%
22coal as a feedstock, with all such coal having a high
23bituminous rank and greater than 1.7 pounds of sulfur per
24million Btu btu content, and that has a valid and effective
25permit to construct emission sources and air pollution control
26equipment and approval with respect to the federal regulations

 

 

HB2857- 26 -LRB103 25518 AMQ 51867 b

1for Prevention of Significant Deterioration of Air Quality
2(PSD) for the plant pursuant to the federal Clean Air Act;
3provided, however, a clean coal SNG brownfield facility shall
4not be a clean coal SNG facility.
5    "Clean energy" means energy generation that is 90% or
6greater free of carbon dioxide emissions or is generated by a
7renewable energy resource.
8    "Commission" means the Illinois Commerce Commission.
9    "Community renewable generation project" means an electric
10generating facility that:
11        (1) is powered by a renewable energy resource wind,
12    solar thermal energy, photovoltaic cells or panels,
13    biodiesel, crops and untreated and unadulterated organic
14    waste biomass, and hydropower that does not involve new
15    construction or significant expansion of hydropower dams;
16        (2) is interconnected at the distribution system level
17    of an electric utility as defined in this Section, a
18    municipal utility as defined in this Section that owns or
19    operates electric distribution facilities, a public
20    utility as defined in Section 3-105 of the Public
21    Utilities Act, or an electric cooperative, as defined in
22    Section 3-119 of the Public Utilities Act;
23        (3) credits the value of electricity generated by the
24    facility to the subscribers of the facility; and
25        (4) is limited in nameplate capacity to less than or
26    equal to 5,000 kilowatts.

 

 

HB2857- 27 -LRB103 25518 AMQ 51867 b

1    "Costs incurred in connection with the development and
2construction of a facility" means:
3        (1) the cost of acquisition of all real property,
4    fixtures, and improvements in connection therewith and
5    equipment, personal property, and other property, rights,
6    and easements acquired that are deemed necessary for the
7    operation and maintenance of the facility;
8        (2) financing costs with respect to bonds, notes, and
9    other evidences of indebtedness of the Agency;
10        (3) all origination, commitment, utilization,
11    facility, placement, underwriting, syndication, credit
12    enhancement, and rating agency fees;
13        (4) engineering, design, procurement, consulting,
14    legal, accounting, title insurance, survey, appraisal,
15    escrow, trustee, collateral agency, interest rate hedging,
16    interest rate swap, capitalized interest, contingency, as
17    required by lenders, and other financing costs, and other
18    expenses for professional services; and
19        (5) the costs of plans, specifications, site study and
20    investigation, installation, surveys, other Agency costs
21    and estimates of costs, and other expenses necessary or
22    incidental to determining the feasibility of any project,
23    together with such other expenses as may be necessary or
24    incidental to the financing, insuring, acquisition, and
25    construction of a specific project and starting up,
26    commissioning, and placing that project in operation.

 

 

HB2857- 28 -LRB103 25518 AMQ 51867 b

1    "Delivery services" has the same definition as found in
2Section 16-102 of the Public Utilities Act.
3    "Delivery year" means the consecutive 12-month period
4beginning June 1 of a given year and ending May 31 of the
5following year.
6    "Department" means the Department of Commerce and Economic
7Opportunity.
8    "Director" means the Director of the Illinois Power
9Agency.
10    "Demand-response" means measures that decrease peak
11electricity demand or shift demand from peak to off-peak
12periods.
13    "Distributed renewable energy generation device" means a
14device that is:
15        (1) powered by a renewable energy resource wind, solar
16    thermal energy, photovoltaic cells or panels, biodiesel,
17    crops and untreated and unadulterated organic waste
18    biomass, tree waste, and hydropower that does not involve
19    new construction or significant expansion of hydropower
20    dams, waste heat to power systems, or qualified combined
21    heat and power systems;
22        (2) interconnected at the distribution system level of
23    either an electric utility as defined in this Section, a
24    municipal utility as defined in this Section that owns or
25    operates electric distribution facilities, or a rural
26    electric cooperative as defined in Section 3-119 of the

 

 

HB2857- 29 -LRB103 25518 AMQ 51867 b

1    Public Utilities Act;
2        (3) located on the customer side of the customer's
3    electric meter and is primarily used to offset that
4    customer's electricity load; and
5        (4) (blank).
6    "Energy efficiency" means measures that reduce the amount
7of electricity or natural gas consumed in order to achieve a
8given end use. "Energy efficiency" includes voltage
9optimization measures that optimize the voltage at points on
10the electric distribution voltage system and thereby reduce
11electricity consumption by electric customers' end use
12devices. "Energy efficiency" also includes measures that
13reduce the total Btus of electricity, natural gas, and other
14fuels needed to meet the end use or uses.
15    "Electric utility" has the same definition as found in
16Section 16-102 of the Public Utilities Act.
17    "Equity investment eligible community" or "eligible
18community" are synonymous and mean the geographic areas
19throughout Illinois which would most benefit from equitable
20investments by the State designed to combat discrimination.
21Specifically, the eligible communities shall be defined as the
22following areas:
23        (1) R3 Areas as established pursuant to Section 10-40
24    of the Cannabis Regulation and Tax Act, where residents
25    have historically been excluded from economic
26    opportunities, including opportunities in the energy

 

 

HB2857- 30 -LRB103 25518 AMQ 51867 b

1    sector; and
2        (2) environmental Environmental justice communities,
3    as defined by the Illinois Power Agency pursuant to the
4    Illinois Power Agency Act, where residents have
5    historically been subject to disproportionate burdens of
6    pollution, including pollution from the energy sector.
7    "Equity eligible persons" or "eligible persons" means
8persons who would most benefit from equitable investments by
9the State designed to combat discrimination, specifically:
10        (1) persons who graduate from or are current or former
11    participants in the Clean Jobs Workforce Network Program,
12    the Clean Energy Contractor Incubator Program, the
13    Illinois Climate Works Preapprenticeship Program,
14    Returning Residents Clean Jobs Training Program, or the
15    Clean Energy Primes Contractor Accelerator Program, and
16    the solar training pipeline and multi-cultural jobs
17    program created in paragraphs (a)(1) and (a)(3) of Section
18    16-208.12 16-108.21 of the Public Utilities Act;
19        (2) persons who are graduates of or currently enrolled
20    in the foster care system;
21        (3) persons who were formerly incarcerated;
22        (4) persons whose primary residence is in an equity
23    investment eligible community.
24    "Equity eligible contractor" means a business that is
25majority-owned by eligible persons, or a nonprofit or
26cooperative that is majority-governed by eligible persons, or

 

 

HB2857- 31 -LRB103 25518 AMQ 51867 b

1is a natural person that is an eligible person offering
2personal services as an independent contractor.
3    "Facility" means an electric generating unit or a
4co-generating unit that produces electricity along with
5related equipment necessary to connect the facility to an
6electric transmission or distribution system.
7    "General contractor Contractor" means the entity or
8organization with main responsibility for the building of a
9construction project and who is the party signing the prime
10construction contract for the project.
11    "Governmental aggregator" means one or more units of local
12government that individually or collectively procure
13electricity to serve residential retail electrical loads
14located within its or their jurisdiction.
15    "High voltage direct current converter station" means the
16collection of equipment that converts direct current energy
17from a high voltage direct current transmission line into
18alternating current using Voltage Source Conversion technology
19and that is interconnected with transmission or distribution
20assets located in Illinois.
21    "High voltage direct current renewable energy credit"
22means a renewable energy credit associated with a renewable
23energy resource where the renewable energy resource has
24entered into a contract to transmit the energy associated with
25such renewable energy credit over high voltage direct current
26transmission facilities.

 

 

HB2857- 32 -LRB103 25518 AMQ 51867 b

1    "High voltage direct current transmission facilities"
2means the collection of installed equipment that converts
3alternating current energy in one location to direct current
4and transmits that direct current energy to a high voltage
5direct current converter station using Voltage Source
6Conversion technology. "High voltage direct current
7transmission facilities" includes the high voltage direct
8current converter station itself and associated high voltage
9direct current transmission lines. Notwithstanding the
10preceding, after September 15, 2021 (the effective date of
11Public Act 102-662) this amendatory Act of the 102nd General
12Assembly, an otherwise qualifying collection of equipment does
13not qualify as high voltage direct current transmission
14facilities unless its developer entered into a project labor
15agreement, is capable of transmitting electricity at 525kv
16with an Illinois converter station located and interconnected
17in the region of the PJM Interconnection, LLC, and the system
18does not operate as a public utility, as that term is defined
19in Section 3-105 of the Public Utilities Act.
20    "Index price" means the real-time energy settlement price
21at the applicable Illinois trading hub, such as PJM-NIHUB or
22MISO-IL, for a given settlement period.
23    "Indexed renewable energy credit" means a tradable credit
24that represents the environmental attributes of one megawatt
25hour of energy produced from a renewable energy resource, the
26price of which shall be calculated by subtracting the strike

 

 

HB2857- 33 -LRB103 25518 AMQ 51867 b

1price offered by a new utility-scale wind project or a new
2utility-scale photovoltaic project from the index price in a
3given settlement period.
4    "Indexed renewable energy credit counterparty" has the
5same meaning as "public utility" as defined in Section 3-105
6of the Public Utilities Act.
7    "Local government" means a unit of local government as
8defined in Section 1 of Article VII of the Illinois
9Constitution.
10    "Municipality" means a city, village, or incorporated
11town.
12    "Municipal utility" means a public utility owned and
13operated by any subdivision or municipal corporation of this
14State.
15    "Nameplate capacity" means the aggregate inverter
16nameplate capacity in kilowatts AC.
17    "Person" means any natural person, firm, partnership,
18corporation, either domestic or foreign, company, association,
19limited liability company, joint stock company, or association
20and includes any trustee, receiver, assignee, or personal
21representative thereof.
22    "Project" means the planning, bidding, and construction of
23a facility.
24    "Project labor agreement" means a pre-hire collective
25bargaining agreement that covers all terms and conditions of
26employment on a specific construction project and must include

 

 

HB2857- 34 -LRB103 25518 AMQ 51867 b

1the following:
2        (1) provisions establishing the minimum hourly wage
3    for each class of labor organization employee;
4        (2) provisions establishing the benefits and other
5    compensation for each class of labor organization
6    employee;
7        (3) provisions establishing that no strike or disputes
8    will be engaged in by the labor organization employees;
9        (4) provisions establishing that no lockout or
10    disputes will be engaged in by the general contractor
11    building the project; and
12        (5) provisions for minorities and women, as defined
13    under the Business Enterprise for Minorities, Women, and
14    Persons with Disabilities Act, setting forth goals for
15    apprenticeship hours to be performed by minorities and
16    women and setting forth goals for total hours to be
17    performed by underrepresented minorities and women.
18    A labor organization and the general contractor building
19the project shall have the authority to include other terms
20and conditions as they deem necessary.
21    "Public utility" has the same definition as found in
22Section 3-105 of the Public Utilities Act.
23    "Qualified combined heat and power systems" means systems
24that, either simultaneously or sequentially, produce
25electricity and useful thermal energy from a single fuel
26source. Such systems are eligible for "renewable energy

 

 

HB2857- 35 -LRB103 25518 AMQ 51867 b

1credits" in an amount equal to its total energy output where a
2renewable fuel is consumed or in an amount equal to the net
3reduction in nonrenewable fuel consumed on a total energy
4output basis.
5    "Real property" means any interest in land together with
6all structures, fixtures, and improvements thereon, including
7lands under water and riparian rights, any easements,
8covenants, licenses, leases, rights-of-way, uses, and other
9interests, together with any liens, judgments, mortgages, or
10other claims or security interests related to real property.
11    "Renewable energy credit" means a tradable credit that
12represents the environmental attributes of one megawatt hour
13of energy produced from a renewable energy resource.
14    "Renewable energy resources" includes energy and its
15associated renewable energy credit or renewable energy credits
16from wind, solar thermal energy, photovoltaic cells and
17panels, biofuels, hydrogen, other carbon neutral fuels,
18biodiesel, anaerobic digestion, crops and untreated and
19unadulterated organic waste biomass, and hydropower that does
20not involve new construction or significant expansion of
21hydropower dams, waste heat to power systems, or qualified
22combined heat and power systems. For purposes of this Act,
23landfill gas produced in the State is considered a renewable
24energy resource. "Renewable energy resources" does not include
25the incineration or burning of tires, garbage, general
26household, institutional, and commercial waste, industrial

 

 

HB2857- 36 -LRB103 25518 AMQ 51867 b

1lunchroom or office waste, landscape waste, railroad
2crossties, utility poles, or construction or demolition
3debris, other than untreated and unadulterated waste wood.
4"Renewable energy resources" also includes high voltage direct
5current renewable energy credits and the associated energy
6converted to alternating current by a high voltage direct
7current converter station to the extent that: (1) the
8generator of such renewable energy resource contracted with a
9third party to transmit the energy over the high voltage
10direct current transmission facilities, and (2) the
11third-party contracting for delivery of renewable energy
12resources over the high voltage direct current transmission
13facilities have ownership rights over the unretired associated
14high voltage direct current renewable energy credit.
15    "Retail customer" has the same definition as found in
16Section 16-102 of the Public Utilities Act.
17    "Revenue bond" means any bond, note, or other evidence of
18indebtedness issued by the Authority, the principal and
19interest of which is payable solely from revenues or income
20derived from any project or activity of the Agency.
21    "Sequester" means permanent storage of carbon dioxide by
22injecting it into a saline aquifer, a depleted gas reservoir,
23or an oil reservoir, directly or through an enhanced oil
24recovery process that may involve intermediate storage,
25regardless of whether these activities are conducted by a
26clean coal facility, a clean coal SNG facility, a clean coal

 

 

HB2857- 37 -LRB103 25518 AMQ 51867 b

1SNG brownfield facility, or a party with which a clean coal
2facility, clean coal SNG facility, or clean coal SNG
3brownfield facility has contracted for such purposes.
4    "Service area" has the same definition as found in Section
516-102 of the Public Utilities Act.
6    "Settlement period" means the period of time utilized by
7MISO and PJM and their successor organizations as the basis
8for settlement calculations in the real-time energy market.
9    "Sourcing agreement" means (i) in the case of an electric
10utility, an agreement between the owner of a clean coal
11facility and such electric utility, which agreement shall have
12terms and conditions meeting the requirements of paragraph (3)
13of subsection (d) of Section 1-75, (ii) in the case of an
14alternative retail electric supplier, an agreement between the
15owner of a clean coal facility and such alternative retail
16electric supplier, which agreement shall have terms and
17conditions meeting the requirements of Section 16-115(d)(5) of
18the Public Utilities Act, and (iii) in case of a gas utility,
19an agreement between the owner of a clean coal SNG brownfield
20facility and the gas utility, which agreement shall have the
21terms and conditions meeting the requirements of subsection
22(h-1) of Section 9-220 of the Public Utilities Act.
23    "Strike price" means a contract price for energy and
24renewable energy credits from a new utility-scale wind project
25or a new utility-scale photovoltaic project.
26    "Subscriber" means a person who (i) takes delivery service

 

 

HB2857- 38 -LRB103 25518 AMQ 51867 b

1from an electric utility, and (ii) has a subscription of no
2less than 200 watts to a community renewable generation
3project that is located in the electric utility's service
4area. No subscriber's subscriptions may total more than 40% of
5the nameplate capacity of an individual community renewable
6generation project. Entities that are affiliated by virtue of
7a common parent shall not represent multiple subscriptions
8that total more than 40% of the nameplate capacity of an
9individual community renewable generation project.
10    "Subscription" means an interest in a community renewable
11generation project expressed in kilowatts, which is sized
12primarily to offset part or all of the subscriber's
13electricity usage.
14    "Substitute natural gas" or "SNG" means a gas manufactured
15by gasification of hydrocarbon feedstock, which is
16substantially interchangeable in use and distribution with
17conventional natural gas.
18    "Total resource cost test" or "TRC test" means a standard
19that is met if, for an investment in energy efficiency or
20demand-response measures, the benefit-cost ratio is greater
21than one. The benefit-cost ratio is the ratio of the net
22present value of the total benefits of the program to the net
23present value of the total costs as calculated over the
24lifetime of the measures. A total resource cost test compares
25the sum of avoided electric utility costs, representing the
26benefits that accrue to the system and the participant in the

 

 

HB2857- 39 -LRB103 25518 AMQ 51867 b

1delivery of those efficiency measures and including avoided
2costs associated with reduced use of natural gas or other
3fuels, avoided costs associated with reduced water
4consumption, and avoided costs associated with reduced
5operation and maintenance costs, as well as other quantifiable
6societal benefits, to the sum of all incremental costs of
7end-use measures that are implemented due to the program
8(including both utility and participant contributions), plus
9costs to administer, deliver, and evaluate each demand-side
10program, to quantify the net savings obtained by substituting
11the demand-side program for supply resources. In calculating
12avoided costs of power and energy that an electric utility
13would otherwise have had to acquire, reasonable estimates
14shall be included of financial costs likely to be imposed by
15future regulations and legislation on emissions of greenhouse
16gases. In discounting future societal costs and benefits for
17the purpose of calculating net present values, a societal
18discount rate based on actual, long-term Treasury bond yields
19should be used. Notwithstanding anything to the contrary, the
20TRC test shall not include or take into account a calculation
21of market price suppression effects or demand reduction
22induced price effects.
23    "Utility-scale solar project" means an electric generating
24facility that:
25        (1) generates electricity using photovoltaic cells;
26    and

 

 

HB2857- 40 -LRB103 25518 AMQ 51867 b

1        (2) has a nameplate capacity that is greater than
2    5,000 kilowatts.
3    "Utility-scale wind project" means an electric generating
4facility that:
5        (1) generates electricity using wind; and
6        (2) has a nameplate capacity that is greater than
7    5,000 kilowatts.
8    "Waste Heat to Power Systems" means systems that capture
9and generate electricity from energy that would otherwise be
10lost to the atmosphere without the use of additional fuel.
11    "Zero emission credit" means a tradable credit that
12represents the environmental attributes of one megawatt hour
13of energy produced from a zero emission facility.
14    "Zero emission facility" means a facility that: (1) is
15fueled by nuclear power; and (2) is interconnected with PJM
16Interconnection, LLC or the Midcontinent Independent System
17Operator, Inc., or their successors.
18(Source: P.A. 102-662, eff. 9-15-21; revised 6-2-22.)
 
19    (20 ILCS 3855/1-75)
20    Sec. 1-75. Planning and Procurement Bureau. The Planning
21and Procurement Bureau has the following duties and
22responsibilities:
23    (a) The Planning and Procurement Bureau shall each year,
24beginning in 2008, develop procurement plans and conduct
25competitive procurement processes in accordance with the

 

 

HB2857- 41 -LRB103 25518 AMQ 51867 b

1requirements of Section 16-111.5 of the Public Utilities Act
2for the eligible retail customers of electric utilities that
3on December 31, 2005 provided electric service to at least
4100,000 customers in Illinois. Beginning with the delivery
5year commencing on June 1, 2017, the Planning and Procurement
6Bureau shall develop plans and processes for the procurement
7of zero emission credits from zero emission facilities in
8accordance with the requirements of subsection (d-5) of this
9Section. Beginning on the effective date of this amendatory
10Act of the 102nd General Assembly, the Planning and
11Procurement Bureau shall develop plans and processes for the
12procurement of carbon mitigation credits from carbon-free
13energy resources in accordance with the requirements of
14subsection (d-10) of this Section. The Planning and
15Procurement Bureau shall also develop procurement plans and
16conduct competitive procurement processes in accordance with
17the requirements of Section 16-111.5 of the Public Utilities
18Act for the eligible retail customers of small
19multi-jurisdictional electric utilities that (i) on December
2031, 2005 served less than 100,000 customers in Illinois and
21(ii) request a procurement plan for their Illinois
22jurisdictional load. This Section shall not apply to a small
23multi-jurisdictional utility until such time as a small
24multi-jurisdictional utility requests the Agency to prepare a
25procurement plan for their Illinois jurisdictional load. For
26the purposes of this Section, the term "eligible retail

 

 

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1customers" has the same definition as found in Section
216-111.5(a) of the Public Utilities Act.
3    Beginning with the plan or plans to be implemented in the
42017 delivery year, the Agency shall no longer include the
5procurement of renewable energy resources in the annual
6procurement plans required by this subsection (a), except as
7provided in subsection (q) of Section 16-111.5 of the Public
8Utilities Act, and shall instead develop a long-term renewable
9resources procurement plan in accordance with subsection (c)
10of this Section and Section 16-111.5 of the Public Utilities
11Act.
12    In accordance with subsection (c-5) of this Section, the
13Planning and Procurement Bureau shall oversee the procurement
14by electric utilities that served more than 300,000 retail
15customers in this State as of January 1, 2019 of renewable
16energy credits from new utility-scale solar projects to be
17installed, along with energy storage facilities, at or
18adjacent to the sites of electric generating facilities that,
19as of January 1, 2016, burned coal as their primary fuel
20source.
21        (1) The Agency shall each year, beginning in 2008, as
22    needed, issue a request for qualifications for experts or
23    expert consulting firms to develop the procurement plans
24    in accordance with Section 16-111.5 of the Public
25    Utilities Act. In order to qualify an expert or expert
26    consulting firm must have:

 

 

HB2857- 43 -LRB103 25518 AMQ 51867 b

1            (A) direct previous experience assembling
2        large-scale power supply plans or portfolios for
3        end-use customers;
4            (B) an advanced degree in economics, mathematics,
5        engineering, risk management, or a related area of
6        study;
7            (C) 10 years of experience in the electricity
8        sector, including managing supply risk;
9            (D) expertise in wholesale electricity market
10        rules, including those established by the Federal
11        Energy Regulatory Commission and regional transmission
12        organizations;
13            (E) expertise in credit protocols and familiarity
14        with contract protocols;
15            (F) adequate resources to perform and fulfill the
16        required functions and responsibilities; and
17            (G) the absence of a conflict of interest and
18        inappropriate bias for or against potential bidders or
19        the affected electric utilities.
20        (2) The Agency shall each year, as needed, issue a
21    request for qualifications for a procurement administrator
22    to conduct the competitive procurement processes in
23    accordance with Section 16-111.5 of the Public Utilities
24    Act. In order to qualify an expert or expert consulting
25    firm must have:
26            (A) direct previous experience administering a

 

 

HB2857- 44 -LRB103 25518 AMQ 51867 b

1        large-scale competitive procurement process;
2            (B) an advanced degree in economics, mathematics,
3        engineering, or a related area of study;
4            (C) 10 years of experience in the electricity
5        sector, including risk management experience;
6            (D) expertise in wholesale electricity market
7        rules, including those established by the Federal
8        Energy Regulatory Commission and regional transmission
9        organizations;
10            (E) expertise in credit and contract protocols;
11            (F) adequate resources to perform and fulfill the
12        required functions and responsibilities; and
13            (G) the absence of a conflict of interest and
14        inappropriate bias for or against potential bidders or
15        the affected electric utilities.
16        (3) The Agency shall provide affected utilities and
17    other interested parties with the lists of qualified
18    experts or expert consulting firms identified through the
19    request for qualifications processes that are under
20    consideration to develop the procurement plans and to
21    serve as the procurement administrator. The Agency shall
22    also provide each qualified expert's or expert consulting
23    firm's response to the request for qualifications. All
24    information provided under this subparagraph shall also be
25    provided to the Commission. The Agency may provide by rule
26    for fees associated with supplying the information to

 

 

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1    utilities and other interested parties. These parties
2    shall, within 5 business days, notify the Agency in
3    writing if they object to any experts or expert consulting
4    firms on the lists. Objections shall be based on:
5            (A) failure to satisfy qualification criteria;
6            (B) identification of a conflict of interest; or
7            (C) evidence of inappropriate bias for or against
8        potential bidders or the affected utilities.
9        The Agency shall remove experts or expert consulting
10    firms from the lists within 10 days if there is a
11    reasonable basis for an objection and provide the updated
12    lists to the affected utilities and other interested
13    parties. If the Agency fails to remove an expert or expert
14    consulting firm from a list, an objecting party may seek
15    review by the Commission within 5 days thereafter by
16    filing a petition, and the Commission shall render a
17    ruling on the petition within 10 days. There is no right of
18    appeal of the Commission's ruling.
19        (4) The Agency shall issue requests for proposals to
20    the qualified experts or expert consulting firms to
21    develop a procurement plan for the affected utilities and
22    to serve as procurement administrator.
23        (5) The Agency shall select an expert or expert
24    consulting firm to develop procurement plans based on the
25    proposals submitted and shall award contracts of up to 5
26    years to those selected.

 

 

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1        (6) The Agency shall select an expert or expert
2    consulting firm, with approval of the Commission, to serve
3    as procurement administrator based on the proposals
4    submitted. If the Commission rejects, within 5 days, the
5    Agency's selection, the Agency shall submit another
6    recommendation within 3 days based on the proposals
7    submitted. The Agency shall award a 5-year contract to the
8    expert or expert consulting firm so selected with
9    Commission approval.
10    (b) The experts or expert consulting firms retained by the
11Agency shall, as appropriate, prepare procurement plans, and
12conduct a competitive procurement process as prescribed in
13Section 16-111.5 of the Public Utilities Act, to ensure
14adequate, reliable, affordable, efficient, and environmentally
15sustainable electric service at the lowest total cost over
16time, taking into account any benefits of price stability, for
17eligible retail customers of electric utilities that on
18December 31, 2005 provided electric service to at least
19100,000 customers in the State of Illinois, and for eligible
20Illinois retail customers of small multi-jurisdictional
21electric utilities that (i) on December 31, 2005 served less
22than 100,000 customers in Illinois and (ii) request a
23procurement plan for their Illinois jurisdictional load.
24    (c) Renewable portfolio standard.
25        (1)(A) The Agency shall develop a long-term renewable
26    resources procurement plan that shall include procurement

 

 

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1    programs and competitive procurement events necessary to
2    meet the goals set forth in this subsection (c). The
3    initial long-term renewable resources procurement plan
4    shall be released for comment no later than 160 days after
5    June 1, 2017 (the effective date of Public Act 99-906).
6    The Agency shall review, and may revise on an expedited
7    basis, the long-term renewable resources procurement plan
8    at least every 2 years, which shall be conducted in
9    conjunction with the procurement plan under Section
10    16-111.5 of the Public Utilities Act to the extent
11    practicable to minimize administrative expense. No later
12    than 120 days after the effective date of this amendatory
13    Act of the 102nd General Assembly, the Agency shall
14    release for comment a revision to the long-term renewable
15    resources procurement plan, updating elements of the most
16    recently approved plan as needed to comply with this
17    amendatory Act of the 102nd General Assembly, and any
18    long-term renewable resources procurement plan update
19    published by the Agency but not yet approved by the
20    Illinois Commerce Commission shall be withdrawn. The
21    long-term renewable resources procurement plans shall be
22    subject to review and approval by the Commission under
23    Section 16-111.5 of the Public Utilities Act.
24        (B) Subject to subparagraph (F) of this paragraph (1),
25    the long-term renewable resources procurement plan shall
26    attempt to meet the goals for procurement of renewable

 

 

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1    energy credits at levels of at least the following overall
2    percentages: 13% by the 2017 delivery year; increasing by
3    at least 1.5% each delivery year thereafter to at least
4    25% by the 2025 delivery year; increasing by at least 3%
5    each delivery year thereafter to at least 40% by the 2030
6    delivery year, and continuing at no less than 40% for each
7    delivery year thereafter. The Agency shall attempt to
8    procure 50% by delivery year 2040. The Agency shall
9    determine the annual increase between delivery year 2030
10    and delivery year 2040, if any, taking into account energy
11    demand, other energy resources, and other public policy
12    goals. In the event of a conflict between these goals and
13    the new wind and new photovoltaic procurement requirements
14    described in items (i) through (iii) of subparagraph (C)
15    of this paragraph (1), the long-term plan shall prioritize
16    compliance with the new wind and new photovoltaic
17    procurement requirements described in items (i) through
18    (iii) of subparagraph (C) of this paragraph (1) over the
19    annual percentage targets described in this subparagraph
20    (B). The Agency shall not comply with the annual
21    percentage targets described in this subparagraph (B) by
22    procuring renewable energy credits that are unlikely to
23    lead to the development of new renewable resources.
24        For the delivery year beginning June 1, 2017, the
25    procurement plan shall attempt to include, subject to the
26    prioritization outlined in this subparagraph (B),

 

 

HB2857- 49 -LRB103 25518 AMQ 51867 b

1    cost-effective renewable energy resources equal to at
2    least 13% of each utility's load for eligible retail
3    customers and 13% of the applicable portion of each
4    utility's load for retail customers who are not eligible
5    retail customers, which applicable portion shall equal 50%
6    of the utility's load for retail customers who are not
7    eligible retail customers on February 28, 2017.
8        For the delivery year beginning June 1, 2018, the
9    procurement plan shall attempt to include, subject to the
10    prioritization outlined in this subparagraph (B),
11    cost-effective renewable energy resources equal to at
12    least 14.5% of each utility's load for eligible retail
13    customers and 14.5% of the applicable portion of each
14    utility's load for retail customers who are not eligible
15    retail customers, which applicable portion shall equal 75%
16    of the utility's load for retail customers who are not
17    eligible retail customers on February 28, 2017.
18        For the delivery year beginning June 1, 2019, and for
19    each year thereafter, the procurement plans shall attempt
20    to include, subject to the prioritization outlined in this
21    subparagraph (B), cost-effective renewable energy
22    resources equal to a minimum percentage of each utility's
23    load for all retail customers as follows: 16% by June 1,
24    2019; increasing by 1.5% each year thereafter to 25% by
25    June 1, 2025; and 25% by June 1, 2026; increasing by at
26    least 3% each delivery year thereafter to at least 40% by

 

 

HB2857- 50 -LRB103 25518 AMQ 51867 b

1    the 2030 delivery year, and continuing at no less than 40%
2    for each delivery year thereafter. The Agency shall
3    attempt to procure 50% by delivery year 2040. The Agency
4    shall determine the annual increase between delivery year
5    2030 and delivery year 2040, if any, taking into account
6    energy demand, other energy resources, and other public
7    policy goals.
8        For each delivery year, the Agency shall first
9    recognize each utility's obligations for that delivery
10    year under existing contracts. Any renewable energy
11    credits under existing contracts, including renewable
12    energy credits as part of renewable energy resources,
13    shall be used to meet the goals set forth in this
14    subsection (c) for the delivery year.
15        (C) The long-term renewable resources procurement plan
16    described in subparagraph (A) of this paragraph (1) shall
17    include the procurement of renewable energy credits from
18    new projects in amounts equal to at least the following:
19            (i) 10,000,000 renewable energy credits delivered
20        annually by the end of the 2021 delivery year, and
21        increasing ratably to reach 45,000,000 renewable
22        energy credits delivered annually from new wind, and
23        solar, and other renewable energy resource projects by
24        the end of delivery year 2030 such that the goals in
25        subparagraph (B) of this paragraph (1) are met 75%
26        entirely by procurements of renewable energy credits

 

 

HB2857- 51 -LRB103 25518 AMQ 51867 b

1        from new wind and photovoltaic projects and 25% by
2        other renewable energy resource such that the State
3        maintains a sufficient, diverse, reliable, and
4        cost-effective renewable energy resources mix. Of the
5        75% of procurements from new wind and photovoltaic
6        projects that amount, to the extent possible, the
7        Agency shall procure 45% from wind projects and 55%
8        from photovoltaic projects. Of the amount to be
9        procured from photovoltaic projects, the Agency shall
10        procure: at least 50% from solar photovoltaic projects
11        using the program outlined in subparagraph (K) of this
12        paragraph (1) from distributed renewable energy
13        generation devices or community renewable generation
14        projects; at least 47% from utility-scale solar
15        projects; at least 3% from brownfield site
16        photovoltaic projects that are not community renewable
17        generation projects. To the extent that during any
18        delivery year the Agency is unable to procure
19        sufficient renewable energy credits to meet one or
20        more of these categorical percentages, the Agency
21        shall attempt to meet the overall annual procurement
22        goals provided in this Section by procuring renewable
23        energy credits from another category of renewable
24        energy resources.
25            In developing the long-term renewable resources
26        procurement plan, the Agency shall consider other

 

 

HB2857- 52 -LRB103 25518 AMQ 51867 b

1        approaches, in addition to competitive procurements,
2        that can be used to procure renewable energy credits
3        from brownfield site photovoltaic projects and thereby
4        help return blighted or contaminated land to
5        productive use while enhancing public health and the
6        well-being of Illinois residents, including those in
7        environmental justice communities, as defined using
8        existing methodologies and findings used by the Agency
9        and its Administrator in its Illinois Solar for All
10        Program.
11            (ii) In any given delivery year, if forecasted
12        expenses are less than the maximum budget available
13        under subparagraph (E) of this paragraph (1), the
14        Agency shall continue to procure new renewable energy
15        credits until that budget is exhausted in the manner
16        outlined in item (i) of this subparagraph (C).
17            (iii) For purposes of this Section:
18            "New wind projects" means wind renewable energy
19        facilities that are energized after June 1, 2017 for
20        the delivery year commencing June 1, 2017.
21            "New photovoltaic projects" means photovoltaic
22        renewable energy facilities that are energized after
23        June 1, 2017. Photovoltaic projects developed under
24        Section 1-56 of this Act shall not apply towards the
25        new photovoltaic project requirements in this
26        subparagraph (C).

 

 

HB2857- 53 -LRB103 25518 AMQ 51867 b

1            For purposes of calculating whether the Agency has
2        procured enough new wind and solar renewable energy
3        credits required by this subparagraph (C), renewable
4        energy facilities that have a multi-year renewable
5        energy credit delivery contract with the utility
6        through at least delivery year 2030 shall be
7        considered new, however no renewable energy credits
8        from contracts entered into before June 1, 2021 shall
9        be used to calculate whether the Agency has procured
10        the correct proportion of new wind and new solar
11        contracts described in this subparagraph (C) for
12        delivery year 2021 and thereafter.
13        (D) Renewable energy credits shall be cost effective.
14    For purposes of this subsection (c), "cost effective"
15    means that the costs of procuring renewable energy
16    resources do not cause the limit stated in subparagraph
17    (E) of this paragraph (1) to be exceeded and, for
18    renewable energy credits procured through a competitive
19    procurement event, do not exceed benchmarks based on
20    market prices for like products in the region. For
21    purposes of this subsection (c), "like products" means
22    contracts for renewable energy credits from the same or
23    substantially similar technology, same or substantially
24    similar vintage (new or existing), the same or
25    substantially similar quantity, and the same or
26    substantially similar contract length and structure.

 

 

HB2857- 54 -LRB103 25518 AMQ 51867 b

1    Benchmarks shall reflect development, financing, or
2    related costs resulting from requirements imposed through
3    other provisions of State law, including, but not limited
4    to, requirements in subparagraphs (P) and (Q) of this
5    paragraph (1) and the Renewable Energy Facilities
6    Agricultural Impact Mitigation Act. Confidential
7    benchmarks shall be developed by the procurement
8    administrator, in consultation with the Commission staff,
9    Agency staff, and the procurement monitor and shall be
10    subject to Commission review and approval. If price
11    benchmarks for like products in the region are not
12    available, the procurement administrator shall establish
13    price benchmarks based on publicly available data on
14    regional technology costs and expected current and future
15    regional energy prices. The benchmarks in this Section
16    shall not be used to curtail or otherwise reduce
17    contractual obligations entered into by or through the
18    Agency prior to June 1, 2017 (the effective date of Public
19    Act 99-906).
20        (E) For purposes of this subsection (c), the required
21    procurement of cost-effective renewable energy resources
22    for a particular year commencing prior to June 1, 2017
23    shall be measured as a percentage of the actual amount of
24    electricity (megawatt-hours) supplied by the electric
25    utility to eligible retail customers in the delivery year
26    ending immediately prior to the procurement, and, for

 

 

HB2857- 55 -LRB103 25518 AMQ 51867 b

1    delivery years commencing on and after June 1, 2017, the
2    required procurement of cost-effective renewable energy
3    resources for a particular year shall be measured as a
4    percentage of the actual amount of electricity
5    (megawatt-hours) delivered by the electric utility in the
6    delivery year ending immediately prior to the procurement,
7    to all retail customers in its service territory. For
8    purposes of this subsection (c), the amount paid per
9    kilowatthour means the total amount paid for electric
10    service expressed on a per kilowatthour basis. For
11    purposes of this subsection (c), the total amount paid for
12    electric service includes without limitation amounts paid
13    for supply, transmission, capacity, distribution,
14    surcharges, and add-on taxes.
15        Notwithstanding the requirements of this subsection
16    (c), the total of renewable energy resources procured
17    under the procurement plan for any single year shall be
18    subject to the limitations of this subparagraph (E). Such
19    procurement shall be reduced for all retail customers
20    based on the amount necessary to limit the annual
21    estimated average net increase due to the costs of these
22    resources included in the amounts paid by eligible retail
23    customers in connection with electric service to no more
24    than 4.25% of the amount paid per kilowatthour by those
25    customers during the year ending May 31, 2009. To arrive
26    at a maximum dollar amount of renewable energy resources

 

 

HB2857- 56 -LRB103 25518 AMQ 51867 b

1    to be procured for the particular delivery year, the
2    resulting per kilowatthour amount shall be applied to the
3    actual amount of kilowatthours of electricity delivered,
4    or applicable portion of such amount as specified in
5    paragraph (1) of this subsection (c), as applicable, by
6    the electric utility in the delivery year immediately
7    prior to the procurement to all retail customers in its
8    service territory. The calculations required by this
9    subparagraph (E) shall be made only once for each delivery
10    year at the time that the renewable energy resources are
11    procured. Once the determination as to the amount of
12    renewable energy resources to procure is made based on the
13    calculations set forth in this subparagraph (E) and the
14    contracts procuring those amounts are executed, no
15    subsequent rate impact determinations shall be made and no
16    adjustments to those contract amounts shall be allowed.
17    All costs incurred under such contracts shall be fully
18    recoverable by the electric utility as provided in this
19    Section.
20        (F) If the limitation on the amount of renewable
21    energy resources procured in subparagraph (E) of this
22    paragraph (1) prevents the Agency from meeting all of the
23    goals in this subsection (c), the Agency's long-term plan
24    shall prioritize compliance with the requirements of this
25    subsection (c) regarding renewable energy credits in the
26    following order:

 

 

HB2857- 57 -LRB103 25518 AMQ 51867 b

1            (i) renewable energy credits under existing
2        contractual obligations as of June 1, 2021;
3            (i-5) funding for the Illinois Solar for All
4        Program, as described in subparagraph (O) of this
5        paragraph (1);
6            (ii) renewable energy credits necessary to comply
7        with the new wind and new photovoltaic procurement
8        requirements described in items (i) through (iii) of
9        subparagraph (C) of this paragraph (1); and
10            (iii) renewable energy credits necessary to meet
11        the remaining requirements of this subsection (c).
12        (G) The following provisions shall apply to the
13    Agency's procurement of renewable energy credits under
14    this subsection (c):
15            (i) Notwithstanding whether a long-term renewable
16        resources procurement plan has been approved, the
17        Agency shall conduct an initial forward procurement
18        for renewable energy credits from new utility-scale
19        wind projects within 160 days after June 1, 2017 (the
20        effective date of Public Act 99-906). For the purposes
21        of this initial forward procurement, the Agency shall
22        solicit 15-year contracts for delivery of 1,000,000
23        renewable energy credits delivered annually from new
24        utility-scale wind projects to begin delivery on June
25        1, 2019, if available, but not later than June 1, 2021,
26        unless the project has delays in the establishment of

 

 

HB2857- 58 -LRB103 25518 AMQ 51867 b

1        an operating interconnection with the applicable
2        transmission or distribution system as a result of the
3        actions or inactions of the transmission or
4        distribution provider, or other causes for force
5        majeure as outlined in the procurement contract, in
6        which case, not later than June 1, 2022. Payments to
7        suppliers of renewable energy credits shall commence
8        upon delivery. Renewable energy credits procured under
9        this initial procurement shall be included in the
10        Agency's long-term plan and shall apply to all
11        renewable energy goals in this subsection (c).
12            (ii) Notwithstanding whether a long-term renewable
13        resources procurement plan has been approved, the
14        Agency shall conduct an initial forward procurement
15        for renewable energy credits from new utility-scale
16        solar projects and brownfield site photovoltaic
17        projects within one year after June 1, 2017 (the
18        effective date of Public Act 99-906). For the purposes
19        of this initial forward procurement, the Agency shall
20        solicit 15-year contracts for delivery of 1,000,000
21        renewable energy credits delivered annually from new
22        utility-scale solar projects and brownfield site
23        photovoltaic projects to begin delivery on June 1,
24        2019, if available, but not later than June 1, 2021,
25        unless the project has delays in the establishment of
26        an operating interconnection with the applicable

 

 

HB2857- 59 -LRB103 25518 AMQ 51867 b

1        transmission or distribution system as a result of the
2        actions or inactions of the transmission or
3        distribution provider, or other causes for force
4        majeure as outlined in the procurement contract, in
5        which case, not later than June 1, 2022. The Agency may
6        structure this initial procurement in one or more
7        discrete procurement events. Payments to suppliers of
8        renewable energy credits shall commence upon delivery.
9        Renewable energy credits procured under this initial
10        procurement shall be included in the Agency's
11        long-term plan and shall apply to all renewable energy
12        goals in this subsection (c).
13            (iii) Notwithstanding whether the Commission has
14        approved the periodic long-term renewable resources
15        procurement plan revision described in Section
16        16-111.5 of the Public Utilities Act, the Agency shall
17        conduct at least one subsequent forward procurement
18        for renewable energy credits from new utility-scale
19        wind projects, new utility-scale solar projects, and
20        new brownfield site photovoltaic projects within 240
21        days after the effective date of this amendatory Act
22        of the 102nd General Assembly in quantities necessary
23        to meet the requirements of subparagraph (C) of this
24        paragraph (1) through the delivery year beginning June
25        1, 2021.
26            (iv) Notwithstanding whether the Commission has

 

 

HB2857- 60 -LRB103 25518 AMQ 51867 b

1        approved the periodic long-term renewable resources
2        procurement plan revision described in Section
3        16-111.5 of the Public Utilities Act, the Agency shall
4        open capacity for each category in the Adjustable
5        Block program within 90 days after the effective date
6        of this amendatory Act of the 102nd General Assembly
7        manner:
8                (1) The Agency shall open the first block of
9            annual capacity for the category described in item
10            (i) of subparagraph (K) of this paragraph (1). The
11            first block of annual capacity for item (i) shall
12            be for at least 75 megawatts of total nameplate
13            capacity. The price of the renewable energy credit
14            for this block of capacity shall be 4% less than
15            the price of the last open block in this category.
16            Projects on a waitlist shall be awarded contracts
17            first in the order in which they appear on the
18            waitlist. Notwithstanding anything to the
19            contrary, for those renewable energy credits that
20            qualify and are procured under this subitem (1) of
21            this item (iv), the renewable energy credit
22            delivery contract value shall be paid in full,
23            based on the estimated generation during the first
24            15 years of operation, by the contracting
25            utilities at the time that the facility producing
26            the renewable energy credits is interconnected at

 

 

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1            the distribution system level of the utility and
2            verified as energized and in compliance by the
3            Program Administrator. The electric utility shall
4            receive and retire all renewable energy credits
5            generated by the project for the first 15 years of
6            operation. Renewable energy credits generated by
7            the project thereafter shall not be transferred
8            under the renewable energy credit delivery
9            contract with the counterparty electric utility.
10                (2) The Agency shall open the first block of
11            annual capacity for the category described in item
12            (ii) of subparagraph (K) of this paragraph (1).
13            The first block of annual capacity for item (ii)
14            shall be for at least 75 megawatts of total
15            nameplate capacity.
16                    (A) The price of the renewable energy
17                credit for any project on a waitlist for this
18                category before the opening of this block
19                shall be 4% less than the price of the last
20                open block in this category. Projects on the
21                waitlist shall be awarded contracts first in
22                the order in which they appear on the
23                waitlist. Any projects that are less than or
24                equal to 25 kilowatts in size on the waitlist
25                for this capacity shall be moved to the
26                waitlist for paragraph (1) of this item (iv).

 

 

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1                Notwithstanding anything to the contrary,
2                projects that were on the waitlist prior to
3                opening of this block shall not be required to
4                be in compliance with the requirements of
5                subparagraph (Q) of this paragraph (1) of this
6                subsection (c). Notwithstanding anything to
7                the contrary, for those renewable energy
8                credits procured from projects that were on
9                the waitlist for this category before the
10                opening of this block 20% of the renewable
11                energy credit delivery contract value, based
12                on the estimated generation during the first
13                15 years of operation, shall be paid by the
14                contracting utilities at the time that the
15                facility producing the renewable energy
16                credits is interconnected at the distribution
17                system level of the utility and verified as
18                energized by the Program Administrator. The
19                remaining portion shall be paid ratably over
20                the subsequent 4-year period. The electric
21                utility shall receive and retire all renewable
22                energy credits generated by the project during
23                the first 15 years of operation. Renewable
24                energy credits generated by the project
25                thereafter shall not be transferred under the
26                renewable energy credit delivery contract with

 

 

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1                the counterparty electric utility.
2                    (B) The price of renewable energy credits
3                for any project not on the waitlist for this
4                category before the opening of the block shall
5                be determined and published by the Agency.
6                Projects not on a waitlist as of the opening
7                of this block shall be subject to the
8                requirements of subparagraph (Q) of this
9                paragraph (1), as applicable. Projects not on
10                a waitlist as of the opening of this block
11                shall be subject to the contract provisions
12                outlined in item (iii) of subparagraph (L) of
13                this paragraph (1). The Agency shall strive to
14                publish updated prices and an updated
15                renewable energy credit delivery contract as
16                quickly as possible.
17                (3) For opening the first 2 blocks of annual
18            capacity for projects participating in item (iii)
19            of subparagraph (K) of paragraph (1) of subsection
20            (c), projects shall be selected exclusively from
21            those projects on the ordinal waitlists of
22            community renewable generation projects
23            established by the Agency based on the status of
24            those ordinal waitlists as of December 31, 2020,
25            and only those projects previously determined to
26            be eligible for the Agency's April 2019 community

 

 

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1            solar project selection process.
2                The first 2 blocks of annual capacity for item
3            (iii) shall be for 250 megawatts of total
4            nameplate capacity, with both blocks opening
5            simultaneously under the schedule outlined in the
6            paragraphs below. Projects shall be selected as
7            follows:
8                    (A) The geographic balance of selected
9                projects shall follow the Group classification
10                found in the Agency's Revised Long-Term
11                Renewable Resources Procurement Plan, with 70%
12                of capacity allocated to projects on the Group
13                B waitlist and 30% of capacity allocated to
14                projects on the Group A waitlist.
15                    (B) Contract awards for waitlisted
16                projects shall be allocated proportionate to
17                the total nameplate capacity amount across
18                both ordinal waitlists associated with that
19                applicant firm or its affiliates, subject to
20                the following conditions.
21                        (i) Each applicant firm having a
22                    waitlisted project eligible for selection
23                    shall receive no less than 500 kilowatts
24                    in awarded capacity across all groups, and
25                    no approved vendor may receive more than
26                    20% of each Group's waitlist allocation.

 

 

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1                        (ii) Each applicant firm, upon
2                    receiving an award of program capacity
3                    proportionate to its waitlisted capacity,
4                    may then determine which waitlisted
5                    projects it chooses to be selected for a
6                    contract award up to that capacity amount.
7                        (iii) Assuming all other program
8                    requirements are met, applicant firms may
9                    adjust the nameplate capacity of applicant
10                    projects without losing waitlist
11                    eligibility, so long as no project is
12                    greater than 2,000 kilowatts in size.
13                        (iv) Assuming all other program
14                    requirements are met, applicant firms may
15                    adjust the expected production associated
16                    with applicant projects, subject to
17                    verification by the Program Administrator.
18                    (C) After a review of affiliate
19                information and the current ordinal waitlists,
20                the Agency shall announce the nameplate
21                capacity award amounts associated with
22                applicant firms no later than 90 days after
23                the effective date of this amendatory Act of
24                the 102nd General Assembly.
25                    (D) Applicant firms shall submit their
26                portfolio of projects used to satisfy those

 

 

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1                contract awards no less than 90 days after the
2                Agency's announcement. The total nameplate
3                capacity of all projects used to satisfy that
4                portfolio shall be no greater than the
5                Agency's nameplate capacity award amount
6                associated with that applicant firm. An
7                applicant firm may decline, in whole or in
8                part, its nameplate capacity award without
9                penalty, with such unmet capacity rolled over
10                to the next block opening for project
11                selection under item (iii) of subparagraph (K)
12                of this subsection (c). Any projects not
13                included in an applicant firm's portfolio may
14                reapply without prejudice upon the next block
15                reopening for project selection under item
16                (iii) of subparagraph (K) of this subsection
17                (c).
18                    (E) The renewable energy credit delivery
19                contract shall be subject to the contract and
20                payment terms outlined in item (iv) of
21                subparagraph (L) of this subsection (c).
22                Contract instruments used for this
23                subparagraph shall contain the following
24                terms:
25                        (i) Renewable energy credit prices
26                    shall be fixed, without further adjustment

 

 

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1                    under any other provision of this Act or
2                    for any other reason, at 10% lower than
3                    prices applicable to the last open block
4                    for this category, inclusive of any adders
5                    available for achieving a minimum of 50%
6                    of subscribers to the project's nameplate
7                    capacity being residential or small
8                    commercial customers with subscriptions of
9                    below 25 kilowatts in size;
10                        (ii) A requirement that a minimum of
11                    50% of subscribers to the project's
12                    nameplate capacity be residential or small
13                    commercial customers with subscriptions of
14                    below 25 kilowatts in size;
15                        (iii) Permission for the ability of a
16                    contract holder to substitute projects
17                    with other waitlisted projects without
18                    penalty should a project receive a
19                    non-binding estimate of costs to construct
20                    the interconnection facilities and any
21                    required distribution upgrades associated
22                    with that project of greater than 30 cents
23                    per watt AC of that project's nameplate
24                    capacity. In developing the applicable
25                    contract instrument, the Agency may
26                    consider whether other circumstances

 

 

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1                    outside of the control of the applicant
2                    firm should also warrant project
3                    substitution rights.
4                    The Agency shall publish a finalized
5                updated renewable energy credit delivery
6                contract developed consistent with these terms
7                and conditions no less than 30 days before
8                applicant firms must submit their portfolio of
9                projects pursuant to item (D).
10                    (F) To be eligible for an award, the
11                applicant firm shall certify that not less
12                than prevailing wage, as determined pursuant
13                to the Illinois Prevailing Wage Act, was or
14                will be paid to employees who are engaged in
15                construction activities associated with a
16                selected project.
17                (4) The Agency shall open the first block of
18            annual capacity for the category described in item
19            (iv) of subparagraph (K) of this paragraph (1).
20            The first block of annual capacity for item (iv)
21            shall be for at least 50 megawatts of total
22            nameplate capacity. Renewable energy credit prices
23            shall be fixed, without further adjustment under
24            any other provision of this Act or for any other
25            reason, at the price in the last open block in the
26            category described in item (ii) of subparagraph

 

 

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1            (K) of this paragraph (1). Pricing for future
2            blocks of annual capacity for this category may be
3            adjusted in the Agency's second revision to its
4            Long-Term Renewable Resources Procurement Plan.
5            Projects in this category shall be subject to the
6            contract terms outlined in item (iv) of
7            subparagraph (L) of this paragraph (1).
8                (5) The Agency shall open the equivalent of 2
9            years of annual capacity for the category
10            described in item (v) of subparagraph (K) of this
11            paragraph (1). The first block of annual capacity
12            for item (v) shall be for at least 10 megawatts of
13            total nameplate capacity. Notwithstanding the
14            provisions of item (v) of subparagraph (K) of this
15            paragraph (1), for the purpose of this initial
16            block, the agency shall accept new project
17            applications intended to increase the diversity of
18            areas hosting community solar projects, the
19            business models of projects, and the size of
20            projects, as described by the Agency in its
21            long-term renewable resources procurement plan
22            that is approved as of the effective date of this
23            amendatory Act of the 102nd General Assembly.
24            Projects in this category shall be subject to the
25            contract terms outlined in item (iii) of
26            subsection (L) of this paragraph (1).

 

 

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1                (6) The Agency shall open the first blocks of
2            annual capacity for the category described in item
3            (vi) of subparagraph (K) of this paragraph (1),
4            with allocations of capacity within the block
5            generally matching the historical share of block
6            capacity allocated between the category described
7            in items (i) and (ii) of subparagraph (K) of this
8            paragraph (1). The first two blocks of annual
9            capacity for item (vi) shall be for at least 75
10            megawatts of total nameplate capacity. The price
11            of renewable energy credits for the blocks of
12            capacity shall be 4% less than the price of the
13            last open blocks in the categories described in
14            items (i) and (ii) of subparagraph (K) of this
15            paragraph (1). Pricing for future blocks of annual
16            capacity for this category may be adjusted in the
17            Agency's second revision to its Long-Term
18            Renewable Resources Procurement Plan. Projects in
19            this category shall be subject to the applicable
20            contract terms outlined in items (ii) and (iii) of
21            subparagraph (L) of this paragraph (1).
22            (v) Upon the effective date of this amendatory Act
23        of the 102nd General Assembly, for all competitive
24        procurements and any procurements of renewable energy
25        credit from new utility-scale wind and new
26        utility-scale photovoltaic projects, the Agency shall

 

 

HB2857- 71 -LRB103 25518 AMQ 51867 b

1        procure indexed renewable energy credits and direct
2        respondents to offer a strike price.
3                (1) The purchase price of the indexed
4            renewable energy credit payment shall be
5            calculated for each settlement period. That
6            payment, for any settlement period, shall be equal
7            to the difference resulting from subtracting the
8            strike price from the index price for that
9            settlement period. If this difference results in a
10            negative number, the indexed REC counterparty
11            shall owe the seller the absolute value multiplied
12            by the quantity of energy produced in the relevant
13            settlement period. If this difference results in a
14            positive number, the seller shall owe the indexed
15            REC counterparty this amount multiplied by the
16            quantity of energy produced in the relevant
17            settlement period.
18                (2) Parties shall cash settle every month,
19            summing up all settlements (both positive and
20            negative, if applicable) for the prior month.
21                (3) To ensure funding in the annual budget
22            established under subparagraph (E) for indexed
23            renewable energy credit procurements for each year
24            of the term of such contracts, which must have a
25            minimum tenure of 20 calendar years, the
26            procurement administrator, Agency, Commission

 

 

HB2857- 72 -LRB103 25518 AMQ 51867 b

1            staff, and procurement monitor shall quantify the
2            annual cost of the contract by utilizing an
3            industry-standard, third-party forward price curve
4            for energy at the appropriate hub or load zone,
5            including the estimated magnitude and timing of
6            the price effects related to federal carbon
7            controls. Each forward price curve shall contain a
8            specific value of the forecasted market price of
9            electricity for each annual delivery year of the
10            contract. For procurement planning purposes, the
11            impact on the annual budget for the cost of
12            indexed renewable energy credits for each delivery
13            year shall be determined as the expected annual
14            contract expenditure for that year, equaling the
15            difference between (i) the sum across all relevant
16            contracts of the applicable strike price
17            multiplied by contract quantity and (ii) the sum
18            across all relevant contracts of the forward price
19            curve for the applicable load zone for that year
20            multiplied by contract quantity. The contracting
21            utility shall not assume an obligation in excess
22            of the estimated annual cost of the contracts for
23            indexed renewable energy credits. Forward curves
24            shall be revised on an annual basis as updated
25            forward price curves are released and filed with
26            the Commission in the proceeding approving the

 

 

HB2857- 73 -LRB103 25518 AMQ 51867 b

1            Agency's most recent long-term renewable resources
2            procurement plan. If the expected contract spend
3            is higher or lower than the total quantity of
4            contracts multiplied by the forward price curve
5            value for that year, the forward price curve shall
6            be updated by the procurement administrator, in
7            consultation with the Agency, Commission staff,
8            and procurement monitors, using then-currently
9            available price forecast data and additional
10            budget dollars shall be obligated or reobligated
11            as appropriate.
12                (4) To ensure that indexed renewable energy
13            credit prices remain predictable and affordable,
14            the Agency may consider the institution of a price
15            collar on REC prices paid under indexed renewable
16            energy credit procurements establishing floor and
17            ceiling REC prices applicable to indexed REC
18            contract prices. Any price collars applicable to
19            indexed REC procurements shall be proposed by the
20            Agency through its long-term renewable resources
21            procurement plan.
22            (vi) All procurements under this subparagraph (G)
23        shall comply with the geographic requirements in
24        subparagraph (I) of this paragraph (1) and shall
25        follow the procurement processes and procedures
26        described in this Section and Section 16-111.5 of the

 

 

HB2857- 74 -LRB103 25518 AMQ 51867 b

1        Public Utilities Act to the extent practicable, and
2        these processes and procedures may be expedited to
3        accommodate the schedule established by this
4        subparagraph (G).
5        (H) The procurement of renewable energy resources for
6    a given delivery year shall be reduced as described in
7    this subparagraph (H) if an alternative retail electric
8    supplier meets the requirements described in this
9    subparagraph (H).
10            (i) Within 45 days after June 1, 2017 (the
11        effective date of Public Act 99-906), an alternative
12        retail electric supplier or its successor shall submit
13        an informational filing to the Illinois Commerce
14        Commission certifying that, as of December 31, 2015,
15        the alternative retail electric supplier owned one or
16        more electric generating facilities that generates
17        renewable energy resources as defined in Section 1-10
18        of this Act, provided that such facilities are not
19        powered by wind or photovoltaics, and the facilities
20        generate one renewable energy credit for each
21        megawatthour of energy produced from the facility.
22            The informational filing shall identify each
23        facility that was eligible to satisfy the alternative
24        retail electric supplier's obligations under Section
25        16-115D of the Public Utilities Act as described in
26        this item (i).

 

 

HB2857- 75 -LRB103 25518 AMQ 51867 b

1            (ii) For a given delivery year, the alternative
2        retail electric supplier may elect to supply its
3        retail customers with renewable energy credits from
4        the facility or facilities described in item (i) of
5        this subparagraph (H) that continue to be owned by the
6        alternative retail electric supplier.
7            (iii) The alternative retail electric supplier
8        shall notify the Agency and the applicable utility, no
9        later than February 28 of the year preceding the
10        applicable delivery year or 15 days after June 1, 2017
11        (the effective date of Public Act 99-906), whichever
12        is later, of its election under item (ii) of this
13        subparagraph (H) to supply renewable energy credits to
14        retail customers of the utility. Such election shall
15        identify the amount of renewable energy credits to be
16        supplied by the alternative retail electric supplier
17        to the utility's retail customers and the source of
18        the renewable energy credits identified in the
19        informational filing as described in item (i) of this
20        subparagraph (H), subject to the following
21        limitations:
22                For the delivery year beginning June 1, 2018,
23            the maximum amount of renewable energy credits to
24            be supplied by an alternative retail electric
25            supplier under this subparagraph (H) shall be 68%
26            multiplied by 25% multiplied by 14.5% multiplied

 

 

HB2857- 76 -LRB103 25518 AMQ 51867 b

1            by the amount of metered electricity
2            (megawatt-hours) delivered by the alternative
3            retail electric supplier to Illinois retail
4            customers during the delivery year ending May 31,
5            2016.
6                For delivery years beginning June 1, 2019 and
7            each year thereafter, the maximum amount of
8            renewable energy credits to be supplied by an
9            alternative retail electric supplier under this
10            subparagraph (H) shall be 68% multiplied by 50%
11            multiplied by 16% multiplied by the amount of
12            metered electricity (megawatt-hours) delivered by
13            the alternative retail electric supplier to
14            Illinois retail customers during the delivery year
15            ending May 31, 2016, provided that the 16% value
16            shall increase by 1.5% each delivery year
17            thereafter to 25% by the delivery year beginning
18            June 1, 2025, and thereafter the 25% value shall
19            apply to each delivery year.
20            For each delivery year, the total amount of
21        renewable energy credits supplied by all alternative
22        retail electric suppliers under this subparagraph (H)
23        shall not exceed 9% of the Illinois target renewable
24        energy credit quantity. The Illinois target renewable
25        energy credit quantity for the delivery year beginning
26        June 1, 2018 is 14.5% multiplied by the total amount of

 

 

HB2857- 77 -LRB103 25518 AMQ 51867 b

1        metered electricity (megawatt-hours) delivered in the
2        delivery year immediately preceding that delivery
3        year, provided that the 14.5% shall increase by 1.5%
4        each delivery year thereafter to 25% by the delivery
5        year beginning June 1, 2025, and thereafter the 25%
6        value shall apply to each delivery year.
7            If the requirements set forth in items (i) through
8        (iii) of this subparagraph (H) are met, the charges
9        that would otherwise be applicable to the retail
10        customers of the alternative retail electric supplier
11        under paragraph (6) of this subsection (c) for the
12        applicable delivery year shall be reduced by the ratio
13        of the quantity of renewable energy credits supplied
14        by the alternative retail electric supplier compared
15        to that supplier's target renewable energy credit
16        quantity. The supplier's target renewable energy
17        credit quantity for the delivery year beginning June
18        1, 2018 is 14.5% multiplied by the total amount of
19        metered electricity (megawatt-hours) delivered by the
20        alternative retail supplier in that delivery year,
21        provided that the 14.5% shall increase by 1.5% each
22        delivery year thereafter to 25% by the delivery year
23        beginning June 1, 2025, and thereafter the 25% value
24        shall apply to each delivery year.
25            On or before April 1 of each year, the Agency shall
26        annually publish a report on its website that

 

 

HB2857- 78 -LRB103 25518 AMQ 51867 b

1        identifies the aggregate amount of renewable energy
2        credits supplied by alternative retail electric
3        suppliers under this subparagraph (H).
4        (I) The Agency shall design its long-term renewable
5    energy procurement plan to maximize the State's interest
6    in the health, safety, and welfare of its residents,
7    including but not limited to minimizing sulfur dioxide,
8    nitrogen oxide, particulate matter and other pollution
9    that adversely affects public health in this State,
10    increasing fuel and resource diversity in this State,
11    enhancing the reliability and resiliency of the
12    electricity distribution system in this State, meeting
13    goals to limit carbon dioxide emissions under federal or
14    State law, and contributing to a cleaner and healthier
15    environment for the citizens of this State. In order to
16    further these legislative purposes, renewable energy
17    credits shall be eligible to be counted toward the
18    renewable energy requirements of this subsection (c) if
19    they are generated from facilities located in this State.
20    The Agency may qualify renewable energy credits from
21    facilities located in states adjacent to Illinois or
22    renewable energy credits associated with the electricity
23    generated by a utility-scale wind energy facility or
24    utility-scale photovoltaic facility and transmitted by a
25    qualifying direct current project described in subsection
26    (b-5) of Section 8-406 of the Public Utilities Act to a

 

 

HB2857- 79 -LRB103 25518 AMQ 51867 b

1    delivery point on the electric transmission grid located
2    in this State or a state adjacent to Illinois, if the
3    generator demonstrates and the Agency determines that the
4    operation of such facility or facilities will help promote
5    the State's interest in the health, safety, and welfare of
6    its residents based on the public interest criteria
7    described above. For the purposes of this Section,
8    renewable resources that are delivered via a high voltage
9    direct current converter station located in Illinois shall
10    be deemed generated in Illinois at the time and location
11    the energy is converted to alternating current by the high
12    voltage direct current converter station if the high
13    voltage direct current transmission line: (i) after the
14    effective date of this amendatory Act of the 102nd General
15    Assembly, was constructed with a project labor agreement;
16    (ii) is capable of transmitting electricity at 525kv;
17    (iii) has an Illinois converter station located and
18    interconnected in the region of the PJM Interconnection,
19    LLC; (iv) does not operate as a public utility; and (v) if
20    the high voltage direct current transmission line was
21    energized after June 1, 2023. To ensure that the public
22    interest criteria are applied to the procurement and given
23    full effect, the Agency's long-term procurement plan shall
24    describe in detail how each public interest factor shall
25    be considered and weighted for facilities located in
26    states adjacent to Illinois.

 

 

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1        (J) In order to promote the competitive development of
2    renewable energy resources in furtherance of the State's
3    interest in the health, safety, and welfare of its
4    residents, renewable energy credits shall not be eligible
5    to be counted toward the renewable energy requirements of
6    this subsection (c) if they are sourced from a generating
7    unit whose costs were being recovered through rates
8    regulated by this State or any other state or states on or
9    after January 1, 2017. Each contract executed to purchase
10    renewable energy credits under this subsection (c) shall
11    provide for the contract's termination if the costs of the
12    generating unit supplying the renewable energy credits
13    subsequently begin to be recovered through rates regulated
14    by this State or any other state or states; and each
15    contract shall further provide that, in that event, the
16    supplier of the credits must return 110% of all payments
17    received under the contract. Amounts returned under the
18    requirements of this subparagraph (J) shall be retained by
19    the utility and all of these amounts shall be used for the
20    procurement of additional renewable energy credits from
21    new wind or new photovoltaic resources as defined in this
22    subsection (c). The long-term plan shall provide that
23    these renewable energy credits shall be procured in the
24    next procurement event.
25        Notwithstanding the limitations of this subparagraph
26    (J), renewable energy credits sourced from generating

 

 

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1    units that are constructed, purchased, owned, or leased by
2    an electric utility as part of an approved project,
3    program, or pilot under Section 1-56 of this Act shall be
4    eligible to be counted toward the renewable energy
5    requirements of this subsection (c), regardless of how the
6    costs of these units are recovered. As long as a
7    generating unit or an identifiable portion of a generating
8    unit has not had and does not have its costs recovered
9    through rates regulated by this State or any other state,
10    HVDC renewable energy credits associated with that
11    generating unit or identifiable portion thereof shall be
12    eligible to be counted toward the renewable energy
13    requirements of this subsection (c).
14        (K) The long-term renewable resources procurement plan
15    developed by the Agency in accordance with subparagraph
16    (A) of this paragraph (1) shall include an Adjustable
17    Block program for the procurement of renewable energy
18    credits from new photovoltaic projects that are
19    distributed renewable energy generation devices or new
20    photovoltaic community renewable generation projects. The
21    Adjustable Block program shall be generally designed to
22    provide for the steady, predictable, and sustainable
23    growth of new solar photovoltaic development in Illinois.
24    To this end, the Adjustable Block program shall provide a
25    transparent annual schedule of prices and quantities to
26    enable the photovoltaic market to scale up and for

 

 

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1    renewable energy credit prices to adjust at a predictable
2    rate over time. The prices set by the Adjustable Block
3    program can be reflected as a set value or as the product
4    of a formula.
5        The Adjustable Block program shall include for each
6    category of eligible projects for each delivery year: a
7    single block of nameplate capacity, a price for renewable
8    energy credits within that block, and the terms and
9    conditions for securing a spot on a waitlist once the
10    block is fully committed or reserved. Except as outlined
11    below, the waitlist of projects in a given year will carry
12    over to apply to the subsequent year when another block is
13    opened. Only projects energized on or after June 1, 2017
14    shall be eligible for the Adjustable Block program. For
15    each category for each delivery year the Agency shall
16    determine the amount of generation capacity in each block,
17    and the purchase price for each block, provided that the
18    purchase price provided and the total amount of generation
19    in all blocks for all categories shall be sufficient to
20    meet the goals in this subsection (c). The Agency shall
21    strive to issue a single block sized to provide for
22    stability and market growth. The Agency shall establish
23    program eligibility requirements that ensure that projects
24    that enter the program are sufficiently mature to indicate
25    a demonstrable path to completion. The Agency may
26    periodically review its prior decisions establishing the

 

 

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1    amount of generation capacity in each block, and the
2    purchase price for each block, and may propose, on an
3    expedited basis, changes to these previously set values,
4    including but not limited to redistributing these amounts
5    and the available funds as necessary and appropriate,
6    subject to Commission approval as part of the periodic
7    plan revision process described in Section 16-111.5 of the
8    Public Utilities Act. The Agency may define different
9    block sizes, purchase prices, or other distinct terms and
10    conditions for projects located in different utility
11    service territories if the Agency deems it necessary to
12    meet the goals in this subsection (c).
13        The Adjustable Block program shall include the
14    following categories in at least the following amounts:
15            (i) At least 20% from distributed renewable energy
16        generation devices with a nameplate capacity of no
17        more than 25 kilowatts.
18            (ii) At least 20% from distributed renewable
19        energy generation devices with a nameplate capacity of
20        more than 25 kilowatts and no more than 5,000
21        kilowatts. The Agency may create sub-categories within
22        this category to account for the differences between
23        projects for small commercial customers, large
24        commercial customers, and public or non-profit
25        customers.
26            (iii) At least 30% from photovoltaic community

 

 

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1        renewable generation projects. Capacity for this
2        category for the first 2 delivery years after the
3        effective date of this amendatory Act of the 102nd
4        General Assembly shall be allocated to waitlist
5        projects as provided in paragraph (3) of item (iv) of
6        subparagraph (G). Starting in the third delivery year
7        after the effective date of this amendatory Act of the
8        102nd General Assembly or earlier if the Agency
9        determines there is additional capacity needed for to
10        meet previous delivery year requirements, the
11        following shall apply:
12                (1) the Agency shall select projects on a
13            first-come, first-serve basis, however the Agency
14            may suggest additional methods to prioritize
15            projects that are submitted at the same time;
16                (2) projects shall have subscriptions of 25 kW
17            or less for at least 50% of the facility's
18            nameplate capacity and the Agency shall price the
19            renewable energy credits with that as a factor;
20                (3) projects shall not be colocated with one
21            or more other community renewable generation
22            projects, as defined in the Agency's first revised
23            long-term renewable resources procurement plan
24            approved by the Commission on February 18, 2020,
25            such that the aggregate nameplate capacity exceeds
26            5,000 kilowatts; and

 

 

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1                (4) projects greater than 2 MW may not apply
2            until after the approval of the Agency's revised
3            Long-Term Renewable Resources Procurement Plan
4            after the effective date of this amendatory Act of
5            the 102nd General Assembly.
6            (iv) At least 15% from distributed renewable
7        generation devices or photovoltaic community renewable
8        generation projects installed at public schools. The
9        Agency may create subcategories within this category
10        to account for the differences between project size or
11        location. Projects located within environmental
12        justice communities or within Organizational Units
13        that fall within Tier 1 or Tier 2 shall be given
14        priority. Each of the Agency's periodic updates to its
15        long-term renewable resources procurement plan to
16        incorporate the procurement described in this
17        subparagraph (iv) shall also include the proposed
18        quantities or blocks, pricing, and contract terms
19        applicable to the procurement as indicated herein. In
20        each such update and procurement, the Agency shall set
21        the renewable energy credit price and establish
22        payment terms for the renewable energy credits
23        procured pursuant to this subparagraph (iv) that make
24        it feasible and affordable for public schools to
25        install photovoltaic distributed renewable energy
26        devices on their premises, including, but not limited

 

 

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1        to, those public schools subject to the prioritization
2        provisions of this subparagraph. For the purposes of
3        this item (iv):
4            "Environmental Justice Community" shall have the
5        same meaning set forth in the Agency's long-term
6        renewable resources procurement plan;
7            "Organization Unit", "Tier 1" and "Tier 2" shall
8        have the meanings set for in Section 18-8.15 of the
9        School Code;
10            "Public schools" shall have the meaning set forth
11        in Section 1-3 of the School Code.
12            (v) At least 5% from community-driven community
13        solar projects intended to provide more direct and
14        tangible connection and benefits to the communities
15        which they serve or in which they operate and,
16        additionally, to increase the variety of community
17        solar locations, models, and options in Illinois. As
18        part of its long-term renewable resources procurement
19        plan, the Agency shall develop selection criteria for
20        projects participating in this category. Nothing in
21        this Section shall preclude the Agency from creating a
22        selection process that maximizes community ownership
23        and community benefits in selecting projects to
24        receive renewable energy credits. Selection criteria
25        shall include:
26                (1) community ownership or community

 

 

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1            wealth-building;
2                (2) additional direct and indirect community
3            benefit, beyond project participation as a
4            subscriber, including, but not limited to,
5            economic, environmental, social, cultural, and
6            physical benefits;
7                (3) meaningful involvement in project
8            organization and development by community members
9            or nonprofit organizations or public entities
10            located in or serving the community;
11                (4) engagement in project operations and
12            management by nonprofit organizations, public
13            entities, or community members; and
14                (5) whether a project is developed in response
15            to a site-specific RFP developed by community
16            members or a nonprofit organization or public
17            entity located in or serving the community.
18            Selection criteria may also prioritize projects
19        that:
20                (1) are developed in collaboration with or to
21            provide complementary opportunities for the Clean
22            Jobs Workforce Network Program, the Illinois
23            Climate Works Preapprenticeship Program, the
24            Returning Residents Clean Jobs Training Program,
25            the Clean Energy Contractor Incubator Program, or
26            the Clean Energy Primes Contractor Accelerator

 

 

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1            Program;
2                (2) increase the diversity of locations of
3            community solar projects in Illinois, including by
4            locating in urban areas and population centers;
5                (3) are located in Equity Investment Eligible
6            Communities;
7                (4) are not greenfield projects;
8                (5) serve only local subscribers;
9                (6) have a nameplate capacity that does not
10            exceed 500 kW;
11                (7) are developed by an equity eligible
12            contractor; or
13                (8) otherwise meaningfully advance the goals
14            of providing more direct and tangible connection
15            and benefits to the communities which they serve
16            or in which they operate and increasing the
17            variety of community solar locations, models, and
18            options in Illinois.
19            For the purposes of this item (v):
20            "Community" means a social unit in which people
21        come together regularly to effect change; a social
22        unit in which participants are marked by a cooperative
23        spirit, a common purpose, or shared interests or
24        characteristics; or a space understood by its
25        residents to be delineated through geographic
26        boundaries or landmarks.

 

 

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1            "Community benefit" means a range of services and
2        activities that provide affirmative, economic,
3        environmental, social, cultural, or physical value to
4        a community; or a mechanism that enables economic
5        development, high-quality employment, and education
6        opportunities for local workers and residents, or
7        formal monitoring and oversight structures such that
8        community members may ensure that those services and
9        activities respond to local knowledge and needs.
10            "Community ownership" means an arrangement in
11        which an electric generating facility is, or over time
12        will be, in significant part, owned collectively by
13        members of the community to which an electric
14        generating facility provides benefits; members of that
15        community participate in decisions regarding the
16        governance, operation, maintenance, and upgrades of
17        and to that facility; and members of that community
18        benefit from regular use of that facility.
19            Terms and guidance within these criteria that are
20        not defined in this item (v) shall be defined by the
21        Agency, with stakeholder input, during the development
22        of the Agency's long-term renewable resources
23        procurement plan. The Agency shall develop regular
24        opportunities for projects to submit applications for
25        projects under this category, and develop selection
26        criteria that gives preference to projects that better

 

 

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1        meet individual criteria as well as projects that
2        address a higher number of criteria.
3            (vi) At least 10% from distributed renewable
4        energy generation devices, which includes distributed
5        renewable energy devices with a nameplate capacity
6        under 5,000 kilowatts or photovoltaic community
7        renewable generation projects, from applicants that
8        are equity eligible contractors. The Agency may create
9        subcategories within this category to account for the
10        differences between project size and type. The Agency
11        shall propose to increase the percentage in this item
12        (vi) over time to 40% based on factors, including, but
13        not limited to, the number of equity eligible
14        contractors and capacity used in this item (vi) in
15        previous delivery years.
16            The Agency shall propose a payment structure for
17        contracts executed pursuant to this paragraph under
18        which, upon a demonstration of qualification or need,
19        applicant firms are advanced capital disbursed after
20        contract execution but before the contracted project's
21        energization. The amount or percentage of capital
22        advanced prior to project energization shall be
23        sufficient to both cover any increase in development
24        costs resulting from prevailing wage requirements or
25        project-labor agreements, and designed to overcome
26        barriers in access to capital faced by equity eligible

 

 

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1        contractors. The amount or percentage of advanced
2        capital may vary by subcategory within this category
3        and by an applicant's demonstration of need, with such
4        levels to be established through the Long-Term
5        Renewable Resources Procurement Plan authorized under
6        subparagraph (A) of paragraph (1) of subsection (c) of
7        this Section.
8            Contracts developed featuring capital advanced
9        prior to a project's energization shall feature
10        provisions to ensure both the successful development
11        of applicant projects and the delivery of the
12        renewable energy credits for the full term of the
13        contract, including ongoing collateral requirements
14        and other provisions deemed necessary by the Agency,
15        and may include energization timelines longer than for
16        comparable project types. The percentage or amount of
17        capital advanced prior to project energization shall
18        not operate to increase the overall contract value,
19        however contracts executed under this subparagraph may
20        feature renewable energy credit prices higher than
21        those offered to similar projects participating in
22        other categories. Capital advanced prior to
23        energization shall serve to reduce the ratable
24        payments made after energization under items (ii) and
25        (iii) of subparagraph (L) or payments made for each
26        renewable energy credit delivery under item (iv) of

 

 

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1        subparagraph (L).
2            (vii) The remaining capacity shall be allocated by
3        the Agency in order to respond to market demand. The
4        Agency shall allocate any discretionary capacity prior
5        to the beginning of each delivery year.
6        To the extent there is uncontracted capacity from any
7    block in any of categories (i) through (vi) at the end of a
8    delivery year, the Agency shall redistribute that capacity
9    to one or more other categories giving priority to
10    categories with projects on a waitlist. The redistributed
11    capacity shall be added to the annual capacity in the
12    subsequent delivery year, and the price for renewable
13    energy credits shall be the price for the new delivery
14    year. Redistributed capacity shall not be considered
15    redistributed when determining whether the goals in this
16    subsection (K) have been met.
17        Notwithstanding anything to the contrary, as the
18    Agency increases the capacity in item (vi) to 40% over
19    time, the Agency may reduce the capacity of items (i)
20    through (v) proportionate to the capacity of the
21    categories of projects in item (vi), to achieve a balance
22    of project types.
23        The Adjustable Block program shall be designed to
24    ensure that renewable energy credits are procured from
25    projects in diverse locations and are not concentrated in
26    a few regional areas.

 

 

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1        (L) Notwithstanding provisions for advancing capital
2    prior to project energization found in item (vi) of
3    subparagraph (K), the procurement of photovoltaic
4    renewable energy credits under items (i) through (vi) of
5    subparagraph (K) of this paragraph (1) shall otherwise be
6    subject to the following contract and payment terms:
7        (i) (Blank).
8            (ii) For those renewable energy credits that
9        qualify and are procured under item (i) of
10        subparagraph (K) of this paragraph (1), and any
11        similar category projects that are procured under item
12        (vi) of subparagraph (K) of this paragraph (1) that
13        qualify and are procured under item (vi), the contract
14        length shall be 15 years. The renewable energy credit
15        delivery contract value shall be paid in full, based
16        on the estimated generation during the first 15 years
17        of operation, by the contracting utilities at the time
18        that the facility producing the renewable energy
19        credits is interconnected at the distribution system
20        level of the utility and verified as energized and
21        compliant by the Program Administrator. The electric
22        utility shall receive and retire all renewable energy
23        credits generated by the project for the first 15
24        years of operation. Renewable energy credits generated
25        by the project thereafter shall not be transferred
26        under the renewable energy credit delivery contract

 

 

HB2857- 94 -LRB103 25518 AMQ 51867 b

1        with the counterparty electric utility.
2            (iii) For those renewable energy credits that
3        qualify and are procured under item (ii) and (v) of
4        subparagraph (K) of this paragraph (1) and any like
5        projects similar category that qualify and are
6        procured under item (vi), the contract length shall be
7        15 years. 15% of the renewable energy credit delivery
8        contract value, based on the estimated generation
9        during the first 15 years of operation, shall be paid
10        by the contracting utilities at the time that the
11        facility producing the renewable energy credits is
12        interconnected at the distribution system level of the
13        utility and verified as energized and compliant by the
14        Program Administrator. The remaining portion shall be
15        paid ratably over the subsequent 6-year period. The
16        electric utility shall receive and retire all
17        renewable energy credits generated by the project for
18        the first 15 years of operation. Renewable energy
19        credits generated by the project thereafter shall not
20        be transferred under the renewable energy credit
21        delivery contract with the counterparty electric
22        utility.
23            (iv) For those renewable energy credits that
24        qualify and are procured under items (iii) and (iv) of
25        subparagraph (K) of this paragraph (1), and any like
26        projects that qualify and are procured under item

 

 

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1        (vi), the renewable energy credit delivery contract
2        length shall be 20 years and shall be paid over the
3        delivery term, not to exceed during each delivery year
4        the contract price multiplied by the estimated annual
5        renewable energy credit generation amount. If
6        generation of renewable energy credits during a
7        delivery year exceeds the estimated annual generation
8        amount, the excess renewable energy credits shall be
9        carried forward to future delivery years and shall not
10        expire during the delivery term. If generation of
11        renewable energy credits during a delivery year,
12        including carried forward excess renewable energy
13        credits, if any, is less than the estimated annual
14        generation amount, payments during such delivery year
15        will not exceed the quantity generated plus the
16        quantity carried forward multiplied by the contract
17        price. The electric utility shall receive all
18        renewable energy credits generated by the project
19        during the first 20 years of operation and retire all
20        renewable energy credits paid for under this item (iv)
21        and return at the end of the delivery term all
22        renewable energy credits that were not paid for.
23        Renewable energy credits generated by the project
24        thereafter shall not be transferred under the
25        renewable energy credit delivery contract with the
26        counterparty electric utility. Notwithstanding the

 

 

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1        preceding, for those projects participating under item
2        (iii) of subparagraph (K), the contract price for a
3        delivery year shall be based on subscription levels as
4        measured on the higher of the first business day of the
5        delivery year or the first business day 6 months after
6        the first business day of the delivery year.
7        Subscription of 90% of nameplate capacity or greater
8        shall be deemed to be fully subscribed for the
9        purposes of this item (iv). For projects receiving a
10        20-year delivery contract, REC prices shall be
11        adjusted downward for consistency with the incentive
12        levels previously determined to be necessary to
13        support projects under 15-year delivery contracts,
14        taking into consideration any additional new
15        requirements placed on the projects, including, but
16        not limited to, labor standards.
17            (v) Each contract shall include provisions to
18        ensure the delivery of the estimated quantity of
19        renewable energy credits and ongoing collateral
20        requirements and other provisions deemed appropriate
21        by the Agency.
22            (vi) The utility shall be the counterparty to the
23        contracts executed under this subparagraph (L) that
24        are approved by the Commission under the process
25        described in Section 16-111.5 of the Public Utilities
26        Act. No contract shall be executed for an amount that

 

 

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1        is less than one renewable energy credit per year.
2            (vii) If, at any time, approved applications for
3        the Adjustable Block program exceed funds collected by
4        the electric utility or would cause the Agency to
5        exceed the limitation described in subparagraph (E) of
6        this paragraph (1) on the amount of renewable energy
7        resources that may be procured, then the Agency may
8        consider future uncommitted funds to be reserved for
9        these contracts on a first-come, first-served basis.
10            (viii) Nothing in this Section shall require the
11        utility to advance any payment or pay any amounts that
12        exceed the actual amount of revenues anticipated to be
13        collected by the utility under paragraph (6) of this
14        subsection (c) and subsection (k) of Section 16-108 of
15        the Public Utilities Act inclusive of eligible funds
16        collected in prior years and alternative compliance
17        payments for use by the utility, and contracts
18        executed under this Section shall expressly
19        incorporate this limitation.
20            (ix) Notwithstanding other requirements of this
21        subparagraph (L), no modification shall be required to
22        Adjustable Block program contracts if they were
23        already executed prior to the establishment, approval,
24        and implementation of new contract forms as a result
25        of this amendatory Act of the 102nd General Assembly.
26            (x) Contracts may be assignable, but only to

 

 

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1        entities first deemed by the Agency to have met
2        program terms and requirements applicable to direct
3        program participation. In developing contracts for the
4        delivery of renewable energy credits, the Agency shall
5        be permitted to establish fees applicable to each
6        contract assignment.
7        (M) The Agency shall be authorized to retain one or
8    more experts or expert consulting firms to develop,
9    administer, implement, operate, and evaluate the
10    Adjustable Block program described in subparagraph (K) of
11    this paragraph (1), and the Agency shall retain the
12    consultant or consultants in the same manner, to the
13    extent practicable, as the Agency retains others to
14    administer provisions of this Act, including, but not
15    limited to, the procurement administrator. The selection
16    of experts and expert consulting firms and the procurement
17    process described in this subparagraph (M) are exempt from
18    the requirements of Section 20-10 of the Illinois
19    Procurement Code, under Section 20-10 of that Code. The
20    Agency shall strive to minimize administrative expenses in
21    the implementation of the Adjustable Block program.
22        The Program Administrator may charge application fees
23    to participating firms to cover the cost of program
24    administration. Any application fee amounts shall
25    initially be determined through the long-term renewable
26    resources procurement plan, and modifications to any

 

 

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1    application fee that deviate more than 25% from the
2    Commission's approved value must be approved by the
3    Commission as a long-term plan revision under Section
4    16-111.5 of the Public Utilities Act. The Agency shall
5    consider stakeholder feedback when making adjustments to
6    application fees and shall notify stakeholders in advance
7    of any planned changes.
8        In addition to covering the costs of program
9    administration, the Agency, in conjunction with its
10    Program Administrator, may also use the proceeds of such
11    fees charged to participating firms to support public
12    education and ongoing regional and national coordination
13    with nonprofit organizations, public bodies, and others
14    engaged in the implementation of renewable energy
15    incentive programs or similar initiatives. This work may
16    include developing papers and reports, hosting regional
17    and national conferences, and other work deemed necessary
18    by the Agency to position the State of Illinois as a
19    national leader in renewable energy incentive program
20    development and administration.
21        The Agency and its consultant or consultants shall
22    monitor block activity, share program activity with
23    stakeholders and conduct quarterly meetings to discuss
24    program activity and market conditions. If necessary, the
25    Agency may make prospective administrative adjustments to
26    the Adjustable Block program design, such as making

 

 

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1    adjustments to purchase prices as necessary to achieve the
2    goals of this subsection (c). Program modifications to any
3    block price that do not deviate from the Commission's
4    approved value by more than 10% shall take effect
5    immediately and are not subject to Commission review and
6    approval. Program modifications to any block price that
7    deviate more than 10% from the Commission's approved value
8    must be approved by the Commission as a long-term plan
9    amendment under Section 16-111.5 of the Public Utilities
10    Act. The Agency shall consider stakeholder feedback when
11    making adjustments to the Adjustable Block design and
12    shall notify stakeholders in advance of any planned
13    changes.
14        The Agency and its program administrators for both the
15    Adjustable Block program and the Illinois Solar for All
16    Program, consistent with the requirements of this
17    subsection (c) and subsection (b) of Section 1-56 of this
18    Act, shall propose the Adjustable Block program terms,
19    conditions, and requirements, including the prices to be
20    paid for renewable energy credits, where applicable, and
21    requirements applicable to participating entities and
22    project applications, through the development, review, and
23    approval of the Agency's long-term renewable resources
24    procurement plan described in this subsection (c) and
25    paragraph (5) of subsection (b) of Section 16-111.5 of the
26    Public Utilities Act. Terms, conditions, and requirements

 

 

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1    for program participation shall include the following:
2            (i) The Agency shall establish a registration
3        process for entities seeking to qualify for
4        program-administered incentive funding and establish
5        baseline qualifications for vendor approval. The
6        Agency must maintain a list of approved entities on
7        each program's website, and may revoke a vendor's
8        ability to receive program-administered incentive
9        funding status upon a determination that the vendor
10        failed to comply with contract terms, the law, or
11        other program requirements.
12            (ii) The Agency shall establish program
13        requirements and minimum contract terms to ensure
14        projects are properly installed and produce their
15        expected amounts of energy. Program requirements may
16        include on-site inspections and photo documentation of
17        projects under construction. The Agency may require
18        repairs, alterations, or additions to remedy any
19        material deficiencies discovered. Vendors who have a
20        disproportionately high number of deficient systems
21        may lose their eligibility to continue to receive
22        State-administered incentive funding through Agency
23        programs and procurements.
24            (iii) To discourage deceptive marketing or other
25        bad faith business practices, the Agency may require
26        direct program participants, including agents

 

 

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1        operating on their behalf, to provide standardized
2        disclosures to a customer prior to that customer's
3        execution of a contract for the development of a
4        distributed generation system or a subscription to a
5        community solar project.
6            (iv) The Agency shall establish one or multiple
7        Consumer Complaints Centers to accept complaints
8        regarding businesses that participate in, or otherwise
9        benefit from, State-administered incentive funding
10        through Agency-administered programs. The Agency shall
11        maintain a public database of complaints with any
12        confidential or particularly sensitive information
13        redacted from public entries.
14            (v) Through a filing in the proceeding for the
15        approval of its long-term renewable energy resources
16        procurement plan, the Agency shall provide an annual
17        written report to the Illinois Commerce Commission
18        documenting the frequency and nature of complaints and
19        any enforcement actions taken in response to those
20        complaints.
21            (vi) The Agency shall schedule regular meetings
22        with representatives of the Office of the Attorney
23        General, the Illinois Commerce Commission, consumer
24        protection groups, and other interested stakeholders
25        to share relevant information about consumer
26        protection, project compliance, and complaints

 

 

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1        received.
2            (vii) To the extent that complaints received
3        implicate the jurisdiction of the Office of the
4        Attorney General, the Illinois Commerce Commission, or
5        local, State, or federal law enforcement, the Agency
6        shall also refer complaints to those entities as
7        appropriate.
8        (N) The Agency shall establish the terms, conditions,
9    and program requirements for photovoltaic community
10    renewable generation projects with a goal to expand access
11    to a broader group of energy consumers, to ensure robust
12    participation opportunities for residential and small
13    commercial customers and those who cannot install
14    renewable energy on their own properties. Subject to
15    reasonable limitations, any plan approved by the
16    Commission shall allow subscriptions to community
17    renewable generation projects to be portable and
18    transferable. For purposes of this subparagraph (N),
19    "portable" means that subscriptions may be retained by the
20    subscriber even if the subscriber relocates or changes its
21    address within the same utility service territory; and
22    "transferable" means that a subscriber may assign or sell
23    subscriptions to another person within the same utility
24    service territory.
25        Through the development of its long-term renewable
26    resources procurement plan, the Agency may consider

 

 

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1    whether community renewable generation projects utilizing
2    technologies other than photovoltaics should be supported
3    through State-administered incentive funding, and may
4    issue requests for information to gauge market demand.
5        Electric utilities shall provide a monetary credit to
6    a subscriber's subsequent bill for service for the
7    proportional output of a community renewable generation
8    project attributable to that subscriber as specified in
9    Section 16-107.5 of the Public Utilities Act.
10        The Agency shall purchase renewable energy credits
11    from subscribed shares of photovoltaic community renewable
12    generation projects through the Adjustable Block program
13    described in subparagraph (K) of this paragraph (1) or
14    through the Illinois Solar for All Program described in
15    Section 1-56 of this Act. The electric utility shall
16    purchase any unsubscribed energy from community renewable
17    generation projects that are Qualifying Facilities ("QF")
18    under the electric utility's tariff for purchasing the
19    output from QFs under Public Utilities Regulatory Policies
20    Act of 1978.
21        The owners of and any subscribers to a community
22    renewable generation project shall not be considered
23    public utilities or alternative retail electricity
24    suppliers under the Public Utilities Act solely as a
25    result of their interest in or subscription to a community
26    renewable generation project and shall not be required to

 

 

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1    become an alternative retail electric supplier by
2    participating in a community renewable generation project
3    with a public utility.
4        (O) For the delivery year beginning June 1, 2018, the
5    long-term renewable resources procurement plan required by
6    this subsection (c) shall provide for the Agency to
7    procure contracts to continue offering the Illinois Solar
8    for All Program described in subsection (b) of Section
9    1-56 of this Act, and the contracts approved by the
10    Commission shall be executed by the utilities that are
11    subject to this subsection (c). The long-term renewable
12    resources procurement plan shall allocate up to
13    $50,000,000 per delivery year to fund the programs, and
14    the plan shall determine the amount of funding to be
15    apportioned to the programs identified in subsection (b)
16    of Section 1-56 of this Act; provided that for the
17    delivery years beginning June 1, 2021, June 1, 2022, and
18    June 1, 2023, the long-term renewable resources
19    procurement plan may average the annual budgets over a
20    3-year period to account for program ramp-up. For the
21    delivery years beginning June 1, 2021, June 1, 2024, June
22    1, 2027, and June 1, 2030 and additional $10,000,000 shall
23    be provided to the Department of Commerce and Economic
24    Opportunity to implement the workforce development
25    programs and reporting as outlined in Section 16-108.12 of
26    the Public Utilities Act. In making the determinations

 

 

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1    required under this subparagraph (O), the Commission shall
2    consider the experience and performance under the programs
3    and any evaluation reports. The Commission shall also
4    provide for an independent evaluation of those programs on
5    a periodic basis that are funded under this subparagraph
6    (O).
7        (P) All programs and procurements under this
8    subsection (c) shall be designed to encourage
9    participating projects to use a diverse and equitable
10    workforce and a diverse set of contractors, including
11    minority-owned businesses, disadvantaged businesses,
12    trade unions, graduates of any workforce training programs
13    administered under this Act, and small businesses.
14        The Agency shall develop a method to optimize
15    procurement of renewable energy credits from proposed
16    utility-scale projects that are located in communities
17    eligible to receive Energy Transition Community Grants
18    pursuant to Section 10-20 of the Energy Community
19    Reinvestment Act. If this requirement conflicts with other
20    provisions of law or the Agency determines that full
21    compliance with the requirements of this subparagraph (P)
22    would be unreasonably costly or administratively
23    impractical, the Agency is to propose alternative
24    approaches to achieve development of renewable energy
25    resources in communities eligible to receive Energy
26    Transition Community Grants pursuant to Section 10-20 of

 

 

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1    the Energy Community Reinvestment Act or seek an exemption
2    from this requirement from the Commission.
3        (Q) Each facility listed in subitems (i) through
4    (viii) of item (1) of this subparagraph (Q) for which a
5    renewable energy credit delivery contract is signed after
6    the effective date of this amendatory Act of the 102nd
7    General Assembly is subject to the following requirements
8    through the Agency's long-term renewable resources
9    procurement plan:
10            (1) Each facility shall be subject to the
11        prevailing wage requirements included in the
12        Prevailing Wage Act. The Agency shall require
13        verification that all construction performed on the
14        facility by the renewable energy credit delivery
15        contract holder, its contractors, or its
16        subcontractors relating to construction of the
17        facility is performed by construction employees
18        receiving an amount for that work equal to or greater
19        than the general prevailing rate, as that term is
20        defined in Section 3 of the Prevailing Wage Act. For
21        purposes of this item (1), "house of worship" means
22        property that is both (1) used exclusively by a
23        religious society or body of persons as a place for
24        religious exercise or religious worship and (2)
25        recognized as exempt from taxation pursuant to Section
26        15-40 of the Property Tax Code. This item (1) shall

 

 

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1        apply to any the following:
2                (i) all new utility-scale wind projects;
3                (ii) all new utility-scale photovoltaic
4            projects;
5                (iii) all new brownfield photovoltaic
6            projects;
7                (iv) all new photovoltaic community renewable
8            energy facilities that qualify for item (iii) of
9            subparagraph (K) of this paragraph (1);
10                (v) all new community driven community
11            photovoltaic projects that qualify for item (v) of
12            subparagraph (K) of this paragraph (1);
13                (vi) all new photovoltaic distributed
14            renewable energy generation devices on schools
15            that qualify for item (iv) of subparagraph (K) of
16            this paragraph (1);
17                (vii) all new photovoltaic distributed
18            renewable energy generation devices that (1)
19            qualify for item (i) of subparagraph (K) of this
20            paragraph (1); (2) are not projects that serve
21            single-family or multi-family residential
22            buildings; and (3) are not houses of worship where
23            the aggregate capacity including collocated
24            projects would not exceed 100 kilowatts;
25                (viii) all new photovoltaic distributed
26            renewable energy generation devices that (1)

 

 

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1            qualify for item (ii) of subparagraph (K) of this
2            paragraph (1); (2) are not projects that serve
3            single-family or multi-family residential
4            buildings; and (3) are not houses of worship where
5            the aggregate capacity including collocated
6            projects would not exceed 100 kilowatts.
7            (2) Renewable energy credits procured from new
8        utility-scale wind projects, new utility-scale solar
9        projects, and new brownfield solar projects pursuant
10        to Agency procurement events occurring after the
11        effective date of this amendatory Act of the 102nd
12        General Assembly must be from facilities built by
13        general contractors that must enter into a project
14        labor agreement, as defined by this Act, prior to
15        construction. The project labor agreement shall be
16        filed with the Director in accordance with procedures
17        established by the Agency through its long-term
18        renewable resources procurement plan. Any information
19        submitted to the Agency in this item (2) shall be
20        considered commercially sensitive information. At a
21        minimum, the project labor agreement must provide the
22        names, addresses, and occupations of the owner of the
23        plant and the individuals representing the labor
24        organization employees participating in the project
25        labor agreement consistent with the Project Labor
26        Agreements Act. The agreement must also specify the

 

 

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1        terms and conditions as defined by this Act.
2            (3) It is the intent of this Section to ensure that
3        economic development occurs across Illinois
4        communities, that emerging businesses may grow, and
5        that there is improved access to the clean energy
6        economy by persons who have greater economic burdens
7        to success. The Agency shall take into consideration
8        the unique cost of compliance of this subparagraph (Q)
9        that might be borne by equity eligible contractors,
10        shall include such costs when determining the price of
11        renewable energy credits in the Adjustable Block
12        program, and shall take such costs into consideration
13        in a nondiscriminatory manner when comparing bids for
14        competitive procurements. The Agency shall consider
15        costs associated with compliance whether in the
16        development, financing, or construction of projects.
17        The Agency shall periodically review the assumptions
18        in these costs and may adjust prices, in compliance
19        with subparagraph (M) of this paragraph (1).
20        (R) In its long-term renewable resources procurement
21    plan, the Agency shall establish a self-direct renewable
22    portfolio standard compliance program for eligible
23    self-direct customers that purchase renewable energy
24    credits from utility-scale wind and solar projects through
25    long-term agreements for purchase of renewable energy
26    credits as described in this Section. Such long-term

 

 

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1    agreements may include the purchase of energy or other
2    products on a physical or financial basis and may involve
3    an alternative retail electric supplier as defined in
4    Section 16-102 of the Public Utilities Act. This program
5    shall take effect in the delivery year commencing June 1,
6    2023.
7            (1) For the purposes of this subparagraph:
8            "Eligible self-direct customer" means any retail
9        customers of an electric utility that serves 3,000,000
10        or more retail customers in the State and whose total
11        highest 30-minute demand was more than 10,000
12        kilowatts, or any retail customers of an electric
13        utility that serves less than 3,000,000 retail
14        customers but more than 500,000 retail customers in
15        the State and whose total highest 15-minute demand was
16        more than 10,000 kilowatts.
17            "Retail customer" has the meaning set forth in
18        Section 16-102 of the Public Utilities Act and
19        multiple retail customer accounts under the same
20        corporate parent may aggregate their account demands
21        to meet the 10,000 kilowatt threshold. The criteria
22        for determining whether this subparagraph is
23        applicable to a retail customer shall be based on the
24        12 consecutive billing periods prior to the start of
25        the year in which the application is filed.
26            (2) For renewable energy credits to count toward

 

 

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1        the self-direct renewable portfolio standard
2        compliance program, they must:
3                (i) qualify as renewable energy credits as
4            defined in Section 1-10 of this Act;
5                (ii) be sourced from one or more renewable
6            energy generating facilities that comply with the
7            geographic requirements as set forth in
8            subparagraph (I) of paragraph (1) of subsection
9            (c) as interpreted through the Agency's long-term
10            renewable resources procurement plan, or, where
11            applicable, the geographic requirements that
12            governed utility-scale renewable energy credits at
13            the time the eligible self-direct customer entered
14            into the applicable renewable energy credit
15            purchase agreement;
16                (iii) be procured through long-term contracts
17            with term lengths of at least 10 years either
18            directly with the renewable energy generating
19            facility or through a bundled power purchase
20            agreement, a virtual power purchase agreement, an
21            agreement between the renewable generating
22            facility, an alternative retail electric supplier,
23            and the customer, or such other structure as is
24            permissible under this subparagraph (R);
25                (iv) be equivalent in volume to at least 40%
26            of the eligible self-direct customer's usage,

 

 

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1            determined annually by the eligible self-direct
2            customer's usage during the previous delivery
3            year, measured to the nearest megawatt-hour;
4                (v) be retired by or on behalf of the large
5            energy customer;
6                (vi) be sourced from new utility-scale wind
7            projects or new utility-scale solar projects; and
8                (vii) if the contracts for renewable energy
9            credits are entered into after the effective date
10            of this amendatory Act of the 102nd General
11            Assembly, the new utility-scale wind projects or
12            new utility-scale solar projects must comply with
13            the requirements established in subparagraphs (P)
14            and (Q) of paragraph (1) of this subsection (c)
15            and subsection (c-10).
16            (3) The self-direct renewable portfolio standard
17        compliance program shall be designed to allow eligible
18        self-direct customers to procure new renewable energy
19        credits from new utility-scale wind projects or new
20        utility-scale photovoltaic projects. The Agency shall
21        annually determine the amount of utility-scale
22        renewable energy credits it will include each year
23        from the self-direct renewable portfolio standard
24        compliance program, subject to receiving qualifying
25        applications. In making this determination, the Agency
26        shall evaluate publicly available analyses and studies

 

 

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1        of the potential market size for utility-scale
2        renewable energy long-term purchase agreements by
3        commercial and industrial energy customers and make
4        that report publicly available. If demand for
5        participation in the self-direct renewable portfolio
6        standard compliance program exceeds availability, the
7        Agency shall ensure participation is evenly split
8        between commercial and industrial users to the extent
9        there is sufficient demand from both customer classes.
10        Each renewable energy credit procured pursuant to this
11        subparagraph (R) by a self-direct customer shall
12        reduce the total volume of renewable energy credits
13        the Agency is otherwise required to procure from new
14        utility-scale projects pursuant to subparagraph (C) of
15        paragraph (1) of this subsection (c) on behalf of
16        contracting utilities where the eligible self-direct
17        customer is located. The self-direct customer shall
18        file an annual compliance report with the Agency
19        pursuant to terms established by the Agency through
20        its long-term renewable resources procurement plan to
21        be eligible for participation in this program.
22        Customers must provide the Agency with their most
23        recent electricity billing statements or other
24        information deemed necessary by the Agency to
25        demonstrate they are an eligible self-direct customer.
26            (4) The Commission shall approve a reduction in

 

 

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1        the volumetric charges collected pursuant to Section
2        16-108 of the Public Utilities Act for approved
3        eligible self-direct customers equivalent to the
4        anticipated cost of renewable energy credit deliveries
5        under contracts for new utility-scale wind and new
6        utility-scale solar entered for each delivery year
7        after the large energy customer retires begins
8        retiring eligible new utility scale renewable energy
9        credits for self-compliance. The self-direct credit
10        amount for each renewable energy credit supplied shall
11        be determined annually and is equal to the lower of the
12        volumetric charge collected pursuant to Section 16-108
13        of the Public Utilities Act as calculated under
14        subparagraph (E) of paragraph (1) of subsection (c) of
15        this Section to support the renewable portfolio or the
16        average price paid per renewable energy credit divided
17        by 1,000 for all utility-scale renewable energy
18        credits procured by the Agency pursuant to this
19        Section after June 1, 2017, including indexed
20        renewable energy credits and estimated portion of the
21        cost authorized by subparagraph (E) of paragraph (1)
22        of this subsection (c) that supported the annual
23        procurement of utility-scale renewable energy credits
24        in the prior delivery year using a methodology
25        described in the long-term renewable resources
26        procurement plan, expressed on a per kilowatthour

 

 

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1        basis, and does not include (i) costs associated with
2        any contracts entered into before the delivery year in
3        which the customer files the initial compliance report
4        to be eligible for participation in the self-direct
5        program, and (ii) costs associated with procuring
6        renewable energy credits through existing and future
7        contracts through the Adjustable Block Program,
8        subsection (c-5) of this Section 1-75, and the Solar
9        for All Program. The Agency shall assist the
10        Commission in determining the current and future
11        costs. The Agency must determine the self-direct
12        credit amount for new and existing eligible
13        self-direct customers and submit this to the
14        Commission in an annual compliance filing. The
15        Commission must approve the self-direct credit amount
16        by June 1, 2023 and June 1 of each delivery year
17        thereafter. The approved self-direct credit amount
18        shall be multiplied by each renewable energy credit
19        procured by participating self-direct customers to
20        form the customer's utility bill credit amount.
21            (5) Customers described in this subparagraph (R)
22        shall apply, on a form developed by the Agency, to the
23        Agency to be designated as a self-direct eligible
24        customer. Once the Agency determines that a
25        self-direct customer is eligible for participation in
26        the program, the self-direct customer will remain

 

 

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1        eligible until the end of the term of the contract.
2        Thereafter, application may be made not less than 12
3        months before the filing date of the long-term
4        renewable resources procurement plan described in this
5        Act. At a minimum, such application shall contain the
6        following:
7                (i) the customer's certification that, at the
8            time of the customer's application, the customer
9            qualifies to be a self-direct eligible customer,
10            including documents demonstrating that
11            qualification;
12                (ii) the customer's certification that the
13            customer has entered into or will enter into by
14            the beginning of the applicable procurement year,
15            one or more bilateral contracts for new wind
16            projects or new photovoltaic projects, including
17            supporting documentation;
18                (iii) certification that the contract or
19            contracts for new renewable energy resources are
20            long-term contracts with term lengths of at least
21            10 years, including supporting documentation;
22                (iv) certification of the quantities of
23            renewable energy credits that the customer will
24            purchase each year under such contract or
25            contracts, including supporting documentation;
26                (v) proof that the contract is sufficient to

 

 

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1            produce renewable energy credits to be equivalent
2            in volume to at least 40% of the large energy
3            customer's usage from the previous delivery year,
4            measured to the nearest megawatt-hour; and
5                (vi) certification that the customer intends
6            to maintain the contract for the duration of the
7            length of the contract.
8            (6) If a customer receives the self-direct credit
9        but fails to properly procure and retire renewable
10        energy credits as required under this subparagraph
11        (R), the Commission, on petition from the Agency and
12        after notice and hearing, may direct such customer's
13        utility to recover the cost of the wrongfully received
14        self-direct credits plus interest through an adder to
15        charges assessed pursuant to Section 16-108 of the
16        Public Utilities Act. Self-direct customers who
17        knowingly fail to properly procure and retire
18        renewable energy credits and do not notify the Agency
19        are ineligible for continued participation in the
20        self-direct renewable portfolio standard compliance
21        program.
22        (2) (Blank).
23        (3) (Blank).
24        (4) The electric utility shall retire all renewable
25    energy credits used to comply with the standard.
26        (5) Beginning with the 2010 delivery year and ending

 

 

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1    June 1, 2017, an electric utility subject to this
2    subsection (c) shall apply the lesser of the maximum
3    alternative compliance payment rate or the most recent
4    estimated alternative compliance payment rate for its
5    service territory for the corresponding compliance period,
6    established pursuant to subsection (d) of Section 16-115D
7    of the Public Utilities Act to its retail customers that
8    take service pursuant to the electric utility's hourly
9    pricing tariff or tariffs. The electric utility shall
10    retain all amounts collected as a result of the
11    application of the alternative compliance payment rate or
12    rates to such customers, and, beginning in 2011, the
13    utility shall include in the information provided under
14    item (1) of subsection (d) of Section 16-111.5 of the
15    Public Utilities Act the amounts collected under the
16    alternative compliance payment rate or rates for the prior
17    year ending May 31. Notwithstanding any limitation on the
18    procurement of renewable energy resources imposed by item
19    (2) of this subsection (c), the Agency shall increase its
20    spending on the purchase of renewable energy resources to
21    be procured by the electric utility for the next plan year
22    by an amount equal to the amounts collected by the utility
23    under the alternative compliance payment rate or rates in
24    the prior year ending May 31.
25        (6) The electric utility shall be entitled to recover
26    all of its costs associated with the procurement of

 

 

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1    renewable energy credits under plans approved under this
2    Section and Section 16-111.5 of the Public Utilities Act.
3    These costs shall include associated reasonable expenses
4    for implementing the procurement programs, including, but
5    not limited to, the costs of administering and evaluating
6    the Adjustable Block program, through an automatic
7    adjustment clause tariff in accordance with subsection (k)
8    of Section 16-108 of the Public Utilities Act.
9        (7) Renewable energy credits procured from new
10    photovoltaic projects or new distributed renewable energy
11    generation devices under this Section after June 1, 2017
12    (the effective date of Public Act 99-906) must be procured
13    from devices installed by a qualified person in compliance
14    with the requirements of Section 16-128A of the Public
15    Utilities Act and any rules or regulations adopted
16    thereunder.
17        In meeting the renewable energy requirements of this
18    subsection (c), to the extent feasible and consistent with
19    State and federal law, the renewable energy credit
20    procurements, Adjustable Block solar program, and
21    community renewable generation program shall provide
22    employment opportunities for all segments of the
23    population and workforce, including minority-owned and
24    female-owned business enterprises, and shall not,
25    consistent with State and federal law, discriminate based
26    on race or socioeconomic status.

 

 

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1    (c-5) Procurement of renewable energy credits from new
2renewable energy facilities installed at or adjacent to the
3sites of electric generating facilities that burn or burned
4coal as their primary fuel source.
5        (1) In addition to the procurement of renewable energy
6    credits pursuant to long-term renewable resources
7    procurement plans in accordance with subsection (c) of
8    this Section and Section 16-111.5 of the Public Utilities
9    Act, the Agency shall conduct procurement events in
10    accordance with this subsection (c-5) for the procurement
11    by electric utilities that served more than 300,000 retail
12    customers in this State as of January 1, 2019 of renewable
13    energy credits from new renewable energy facilities to be
14    installed at or adjacent to the sites of electric
15    generating facilities that, as of January 1, 2016, burned
16    coal as their primary fuel source and meet the other
17    criteria specified in this subsection (c-5). For purposes
18    of this subsection (c-5), "new renewable energy facility"
19    means a new utility-scale solar project as defined in this
20    Section 1-75. The renewable energy credits procured
21    pursuant to this subsection (c-5) may be included or
22    counted for purposes of compliance with the amounts of
23    renewable energy credits required to be procured pursuant
24    to subsection (c) of this Section to the extent that there
25    are otherwise shortfalls in compliance with such
26    requirements. The procurement of renewable energy credits

 

 

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1    by electric utilities pursuant to this subsection (c-5)
2    shall be funded solely by revenues collected from the Coal
3    to Solar and Energy Storage Initiative Charge provided for
4    in this subsection (c-5) and subsection (i-5) of Section
5    16-108 of the Public Utilities Act, shall not be funded by
6    revenues collected through any of the other funding
7    mechanisms provided for in subsection (c) of this Section,
8    and shall not be subject to the limitation imposed by
9    subsection (c) on charges to retail customers for costs to
10    procure renewable energy resources pursuant to subsection
11    (c), and shall not be subject to any other requirements or
12    limitations of subsection (c).
13        (2) The Agency shall conduct 2 procurement events to
14    select owners of electric generating facilities meeting
15    the eligibility criteria specified in this subsection
16    (c-5) to enter into long-term contracts to sell renewable
17    energy credits to electric utilities serving more than
18    300,000 retail customers in this State as of January 1,
19    2019. The first procurement event shall be conducted no
20    later than March 31, 2022, unless the Agency elects to
21    delay it, until no later than May 1, 2022, due to its
22    overall volume of work, and shall be to select owners of
23    electric generating facilities located in this State and
24    south of federal Interstate Highway 80 that meet the
25    eligibility criteria specified in this subsection (c-5).
26    The second procurement event shall be conducted no sooner

 

 

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1    than September 30, 2022 and no later than October 31, 2022
2    and shall be to select owners of electric generating
3    facilities located anywhere in this State that meet the
4    eligibility criteria specified in this subsection (c-5).
5    The Agency shall establish and announce a time period,
6    which shall begin no later than 30 days prior to the
7    scheduled date for the procurement event, during which
8    applicants may submit applications to be selected as
9    suppliers of renewable energy credits pursuant to this
10    subsection (c-5). The eligibility criteria for selection
11    as a supplier of renewable energy credits pursuant to this
12    subsection (c-5) shall be as follows:
13            (A) The applicant owns an electric generating
14        facility located in this State that: (i) as of January
15        1, 2016, burned coal as its primary fuel to generate
16        electricity; and (ii) has, or had prior to retirement,
17        an electric generating capacity of at least 150
18        megawatts. The electric generating facility can be
19        either: (i) retired as of the date of the procurement
20        event; or (ii) still operating as of the date of the
21        procurement event.
22            (B) The applicant is not (i) an electric
23        cooperative as defined in Section 3-119 of the Public
24        Utilities Act, or (ii) an entity described in
25        subsection (b)(1) of Section 3-105 of the Public
26        Utilities Act, or an association or consortium of or

 

 

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1        an entity owned by entities described in (i) or (ii);
2        and the coal-fueled electric generating facility was
3        at one time owned, in whole or in part, by a public
4        utility as defined in Section 3-105 of the Public
5        Utilities Act.
6            (C) If participating in the first procurement
7        event, the applicant proposes and commits to construct
8        and operate, at the site, and if necessary for
9        sufficient space on property adjacent to the existing
10        property, at which the electric generating facility
11        identified in paragraph (A) is located: (i) a new
12        renewable energy facility of at least 20 megawatts but
13        no more than 100 megawatts of electric generating
14        capacity, and (ii) an energy storage facility having a
15        storage capacity equal to at least 2 megawatts and at
16        most 10 megawatts. If participating in the second
17        procurement event, the applicant proposes and commits
18        to construct and operate, at the site, and if
19        necessary for sufficient space on property adjacent to
20        the existing property, at which the electric
21        generating facility identified in paragraph (A) is
22        located: (i) a new renewable energy facility of at
23        least 5 megawatts but no more than 20 megawatts of
24        electric generating capacity, and (ii) an energy
25        storage facility having a storage capacity equal to at
26        least 0.5 megawatts and at most one megawatt.

 

 

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1            (D) The applicant agrees that the new renewable
2        energy facility and the energy storage facility will
3        be constructed or installed by a qualified entity or
4        entities in compliance with the requirements of
5        subsection (g) of Section 16-128A of the Public
6        Utilities Act and any rules adopted thereunder.
7            (E) The applicant agrees that personnel operating
8        the new renewable energy facility and the energy
9        storage facility will have the requisite skills,
10        knowledge, training, experience, and competence, which
11        may be demonstrated by completion or current
12        participation and ultimate completion by employees of
13        an accredited or otherwise recognized apprenticeship
14        program for the employee's particular craft, trade, or
15        skill, including through training and education
16        courses and opportunities offered by the owner to
17        employees of the coal-fueled electric generating
18        facility or by previous employment experience
19        performing the employee's particular work skill or
20        function.
21            (F) The applicant commits that not less than the
22        prevailing wage, as determined pursuant to the
23        Prevailing Wage Act, will be paid to the applicant's
24        employees engaged in construction activities
25        associated with the new renewable energy facility and
26        the new energy storage facility and to the employees

 

 

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1        of applicant's contractors engaged in construction
2        activities associated with the new renewable energy
3        facility and the new energy storage facility, and
4        that, on or before the commercial operation date of
5        the new renewable energy facility, the applicant shall
6        file a report with the Agency certifying that the
7        requirements of this subparagraph (F) have been met.
8            (G) The applicant commits that if selected, it
9        will negotiate a project labor agreement for the
10        construction of the new renewable energy facility and
11        associated energy storage facility that includes
12        provisions requiring the parties to the agreement to
13        work together to establish diversity threshold
14        requirements and to ensure best efforts to meet
15        diversity targets, improve diversity at the applicable
16        job site, create diverse apprenticeship opportunities,
17        and create opportunities to employ former coal-fired
18        power plant workers.
19            (H) The applicant commits to enter into a contract
20        or contracts for the applicable duration to provide
21        specified numbers of renewable energy credits each
22        year from the new renewable energy facility to
23        electric utilities that served more than 300,000
24        retail customers in this State as of January 1, 2019,
25        at a price of $30 per renewable energy credit. The
26        price per renewable energy credit shall be fixed at

 

 

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1        $30 for the applicable duration and the renewable
2        energy credits shall not be indexed renewable energy
3        credits as provided for in item (v) of subparagraph
4        (G) of paragraph (1) of subsection (c) of Section 1-75
5        of this Act. The applicable duration of each contract
6        shall be 20 years, unless the applicant is physically
7        interconnected to the PJM Interconnection, LLC
8        transmission grid and had a generating capacity of at
9        least 1,200 megawatts as of January 1, 2021, in which
10        case the applicable duration of the contract shall be
11        15 years.
12            (I) The applicant's application is certified by an
13        officer of the applicant and by an officer of the
14        applicant's ultimate parent company, if any.
15        (3) An applicant may submit applications to contract
16    to supply renewable energy credits from more than one new
17    renewable energy facility to be constructed at or adjacent
18    to one or more qualifying electric generating facilities
19    owned by the applicant. The Agency may select new
20    renewable energy facilities to be located at or adjacent
21    to the sites of more than one qualifying electric
22    generation facility owned by an applicant to contract with
23    electric utilities to supply renewable energy credits from
24    such facilities.
25        (4) The Agency shall assess fees to each applicant to
26    recover the Agency's costs incurred in receiving and

 

 

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1    evaluating applications, conducting the procurement event,
2    developing contracts for sale, delivery and purchase of
3    renewable energy credits, and monitoring the
4    administration of such contracts, as provided for in this
5    subsection (c-5), including fees paid to a procurement
6    administrator retained by the Agency for one or more of
7    these purposes.
8        (5) The Agency shall select the applicants and the new
9    renewable energy facilities to contract with electric
10    utilities to supply renewable energy credits in accordance
11    with this subsection (c-5). In the first procurement
12    event, the Agency shall select applicants and new
13    renewable energy facilities to supply renewable energy
14    credits, at a price of $30 per renewable energy credit,
15    aggregating to no less than 400,000 renewable energy
16    credits per year for the applicable duration, assuming
17    sufficient qualifying applications to supply, in the
18    aggregate, at least that amount of renewable energy
19    credits per year; and not more than 580,000 renewable
20    energy credits per year for the applicable duration. In
21    the second procurement event, the Agency shall select
22    applicants and new renewable energy facilities to supply
23    renewable energy credits, at a price of $30 per renewable
24    energy credit, aggregating to no more than 625,000
25    renewable energy credits per year less the amount of
26    renewable energy credits each year contracted for as a

 

 

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1    result of the first procurement event, for the applicable
2    durations. The number of renewable energy credits to be
3    procured as specified in this paragraph (5) shall not be
4    reduced based on renewable energy credits procured in the
5    self-direct renewable energy credit compliance program
6    established pursuant to subparagraph (R) of paragraph (1)
7    of subsection (c) of Section 1-75.
8        (6) The obligation to purchase renewable energy
9    credits from the applicants and their new renewable energy
10    facilities selected by the Agency shall be allocated to
11    the electric utilities based on their respective
12    percentages of kilowatthours delivered to delivery
13    services customers to the aggregate kilowatthour
14    deliveries by the electric utilities to delivery services
15    customers for the year ended December 31, 2021. In order
16    to achieve these allocation percentages between or among
17    the electric utilities, the Agency shall require each
18    applicant that is selected in the procurement event to
19    enter into a contract with each electric utility for the
20    sale and purchase of renewable energy credits from each
21    new renewable energy facility to be constructed and
22    operated by the applicant, with the sale and purchase
23    obligations under the contracts to aggregate to the total
24    number of renewable energy credits per year to be supplied
25    by the applicant from the new renewable energy facility.
26        (7) The Agency shall submit its proposed selection of

 

 

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1    applicants, new renewable energy facilities to be
2    constructed, and renewable energy credit amounts for each
3    procurement event to the Commission for approval. The
4    Commission shall, within 2 business days after receipt of
5    the Agency's proposed selections, approve the proposed
6    selections if it determines that the applicants and the
7    new renewable energy facilities to be constructed meet the
8    selection criteria set forth in this subsection (c-5) and
9    that the Agency seeks approval for contracts of applicable
10    durations aggregating to no more than the maximum amount
11    of renewable energy credits per year authorized by this
12    subsection (c-5) for the procurement event, at a price of
13    $30 per renewable energy credit.
14        (8) The Agency, in conjunction with its procurement
15    administrator if one is retained, the electric utilities,
16    and potential applicants for contracts to produce and
17    supply renewable energy credits pursuant to this
18    subsection (c-5), shall develop a standard form contract
19    for the sale, delivery and purchase of renewable energy
20    credits pursuant to this subsection (c-5). Each contract
21    resulting from the first procurement event shall allow for
22    a commercial operation date for the new renewable energy
23    facility of either June 1, 2023 or June 1, 2024, with such
24    dates subject to adjustment as provided in this paragraph.
25    Each contract resulting from the second procurement event
26    shall provide for a commercial operation date on June 1

 

 

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1    next occurring up to 48 months after execution of the
2    contract. Each contract shall provide that the owner shall
3    receive payments for renewable energy credits for the
4    applicable durations beginning with the commercial
5    operation date of the new renewable energy facility. The
6    form contract shall provide for adjustments to the
7    commercial operation and payment start dates as needed due
8    to any delays in completing the procurement and
9    contracting processes, in finalizing interconnection
10    agreements and installing interconnection facilities, and
11    in obtaining other necessary governmental permits and
12    approvals. The form contract shall be, to the maximum
13    extent possible, consistent with standard electric
14    industry contracts for sale, delivery, and purchase of
15    renewable energy credits while taking into account the
16    specific requirements of this subsection (c-5). The form
17    contract shall provide for over-delivery and
18    under-delivery of renewable energy credits within
19    reasonable ranges during each 12-month period and penalty,
20    default, and enforcement provisions for failure of the
21    selling party to deliver renewable energy credits as
22    specified in the contract and to comply with the
23    requirements of this subsection (c-5). The standard form
24    contract shall specify that all renewable energy credits
25    delivered to the electric utility pursuant to the contract
26    shall be retired. The Agency shall make the proposed

 

 

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1    contracts available for a reasonable period for comment by
2    potential applicants, and shall publish the final form
3    contract at least 30 days before the date of the first
4    procurement event.
5        (9) Coal to Solar and Energy Storage Initiative
6    Charge.
7            (A) By no later than July 1, 2022, each electric
8        utility that served more than 300,000 retail customers
9        in this State as of January 1, 2019 shall file a tariff
10        with the Commission for the billing and collection of
11        a Coal to Solar and Energy Storage Initiative Charge
12        in accordance with subsection (i-5) of Section 16-108
13        of the Public Utilities Act, with such tariff to be
14        effective, following review and approval or
15        modification by the Commission, beginning January 1,
16        2023. The tariff shall provide for the calculation and
17        setting of the electric utility's Coal to Solar and
18        Energy Storage Initiative Charge to collect revenues
19        estimated to be sufficient, in the aggregate, (i) to
20        enable the electric utility to pay for the renewable
21        energy credits it has contracted to purchase in the
22        delivery year beginning June 1, 2023 and each delivery
23        year thereafter from new renewable energy facilities
24        located at the sites of qualifying electric generating
25        facilities, and (ii) to fund the grant payments to be
26        made in each delivery year by the Department of

 

 

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1        Commerce and Economic Opportunity, or any successor
2        department or agency, which shall be referred to in
3        this subsection (c-5) as the Department, pursuant to
4        paragraph (10) of this subsection (c-5). The electric
5        utility's tariff shall provide for the billing and
6        collection of the Coal to Solar and Energy Storage
7        Initiative Charge on each kilowatthour of electricity
8        delivered to its delivery services customers within
9        its service territory and shall provide for an annual
10        reconciliation of revenues collected with actual
11        costs, in accordance with subsection (i-5) of Section
12        16-108 of the Public Utilities Act.
13            (B) Each electric utility shall remit on a monthly
14        basis to the State Treasurer, for deposit in the Coal
15        to Solar and Energy Storage Initiative Fund provided
16        for in this subsection (c-5), the electric utility's
17        collections of the Coal to Solar and Energy Storage
18        Initiative Charge in the amount estimated to be needed
19        by the Department for grant payments pursuant to grant
20        contracts entered into by the Department pursuant to
21        paragraph (10) of this subsection (c-5).
22        (10) Coal to Solar and Energy Storage Initiative Fund.
23            (A) The Coal to Solar and Energy Storage
24        Initiative Fund is established as a special fund in
25        the State treasury. The Coal to Solar and Energy
26        Storage Initiative Fund is authorized to receive, by

 

 

HB2857- 134 -LRB103 25518 AMQ 51867 b

1        statutory deposit, that portion specified in item (B)
2        of paragraph (9) of this subsection (c-5) of moneys
3        collected by electric utilities through imposition of
4        the Coal to Solar and Energy Storage Initiative Charge
5        required by this subsection (c-5). The Coal to Solar
6        and Energy Storage Initiative Fund shall be
7        administered by the Department to provide grants to
8        support the installation and operation of energy
9        storage facilities at the sites of qualifying electric
10        generating facilities meeting the criteria specified
11        in this paragraph (10).
12            (B) The Coal to Solar and Energy Storage
13        Initiative Fund shall not be subject to sweeps,
14        administrative charges, or chargebacks, including, but
15        not limited to, those authorized under Section 8h of
16        the State Finance Act, that would in any way result in
17        the transfer of those funds from the Coal to Solar and
18        Energy Storage Initiative Fund to any other fund of
19        this State or in having any such funds utilized for any
20        purpose other than the express purposes set forth in
21        this paragraph (10).
22            (C) The Department shall utilize up to
23        $280,500,000 in the Coal to Solar and Energy Storage
24        Initiative Fund for grants, assuming sufficient
25        qualifying applicants, to support installation of
26        energy storage facilities at the sites of up to 3

 

 

HB2857- 135 -LRB103 25518 AMQ 51867 b

1        qualifying electric generating facilities located in
2        the Midcontinent Independent System Operator, Inc.,
3        region in Illinois and the sites of up to 2 qualifying
4        electric generating facilities located in the PJM
5        Interconnection, LLC region in Illinois that meet the
6        criteria set forth in this subparagraph (C). The
7        criteria for receipt of a grant pursuant to this
8        subparagraph (C) are as follows:
9                (1) the electric generating facility at the
10            site has, or had prior to retirement, an electric
11            generating capacity of at least 150 megawatts;
12                (2) the electric generating facility burns (or
13            burned prior to retirement) coal as its primary
14            source of fuel;
15                (3) if the electric generating facility is
16            retired, it was retired subsequent to January 1,
17            2016;
18                (4) the owner of the electric generating
19            facility has not been selected by the Agency
20            pursuant to this subsection (c-5) of this Section
21            to enter into a contract to sell renewable energy
22            credits to one or more electric utilities from a
23            new renewable energy facility located or to be
24            located at or adjacent to the site at which the
25            electric generating facility is located;
26                (5) the electric generating facility located

 

 

HB2857- 136 -LRB103 25518 AMQ 51867 b

1            at the site was at one time owned, in whole or in
2            part, by a public utility as defined in Section
3            3-105 of the Public Utilities Act;
4                (6) the electric generating facility at the
5            site is not owned by (i) an electric cooperative
6            as defined in Section 3-119 of the Public
7            Utilities Act, or (ii) an entity described in
8            subsection (b)(1) of Section 3-105 of the Public
9            Utilities Act, or an association or consortium of
10            or an entity owned by entities described in items
11            (i) or (ii);
12                (7) the proposed energy storage facility at
13            the site will have energy storage capacity of at
14            least 37 megawatts;
15                (8) the owner commits to place the energy
16            storage facility into commercial operation on
17            either June 1, 2023, June 1, 2024, or June 1, 2025,
18            with such date subject to adjustment as needed due
19            to any delays in completing the grant contracting
20            process, in finalizing interconnection agreements
21            and in installing interconnection facilities, and
22            in obtaining necessary governmental permits and
23            approvals;
24                (9) the owner agrees that the new energy
25            storage facility will be constructed or installed
26            by a qualified entity or entities consistent with

 

 

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1            the requirements of subsection (g) of Section
2            16-128A of the Public Utilities Act and any rules
3            adopted under that Section;
4                (10) the owner agrees that personnel operating
5            the energy storage facility will have the
6            requisite skills, knowledge, training, experience,
7            and competence, which may be demonstrated by
8            completion or current participation and ultimate
9            completion by employees of an accredited or
10            otherwise recognized apprenticeship program for
11            the employee's particular craft, trade, or skill,
12            including through training and education courses
13            and opportunities offered by the owner to
14            employees of the coal-fueled electric generating
15            facility or by previous employment experience
16            performing the employee's particular work skill or
17            function;
18                (11) the owner commits that not less than the
19            prevailing wage, as determined pursuant to the
20            Prevailing Wage Act, will be paid to the owner's
21            employees engaged in construction activities
22            associated with the new energy storage facility
23            and to the employees of the owner's contractors
24            engaged in construction activities associated with
25            the new energy storage facility, and that, on or
26            before the commercial operation date of the new

 

 

HB2857- 138 -LRB103 25518 AMQ 51867 b

1            energy storage facility, the owner shall file a
2            report with the Department certifying that the
3            requirements of this subparagraph (11) have been
4            met; and
5                (12) the owner commits that if selected to
6            receive a grant, it will negotiate a project labor
7            agreement for the construction of the new energy
8            storage facility that includes provisions
9            requiring the parties to the agreement to work
10            together to establish diversity threshold
11            requirements and to ensure best efforts to meet
12            diversity targets, improve diversity at the
13            applicable job site, create diverse apprenticeship
14            opportunities, and create opportunities to employ
15            former coal-fired power plant workers.
16            The Department shall accept applications for this
17        grant program until March 31, 2022 and shall announce
18        the award of grants no later than June 1, 2022. The
19        Department shall make the grant payments to a
20        recipient in equal annual amounts for 10 years
21        following the date the energy storage facility is
22        placed into commercial operation. The annual grant
23        payments to a qualifying energy storage facility shall
24        be $110,000 per megawatt of energy storage capacity,
25        with total annual grant payments pursuant to this
26        subparagraph (C) for qualifying energy storage

 

 

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1        facilities not to exceed $28,050,000 in any year.
2            (D) Grants of funding for energy storage
3        facilities pursuant to subparagraph (C) of this
4        paragraph (10), from the Coal to Solar and Energy
5        Storage Initiative Fund, shall be memorialized in
6        grant contracts between the Department and the
7        recipient. The grant contracts shall specify the date
8        or dates in each year on which the annual grant
9        payments shall be paid.
10            (E) All disbursements from the Coal to Solar and
11        Energy Storage Initiative Fund shall be made only upon
12        warrants of the Comptroller drawn upon the Treasurer
13        as custodian of the Fund upon vouchers signed by the
14        Director of the Department or by the person or persons
15        designated by the Director of the Department for that
16        purpose. The Comptroller is authorized to draw the
17        warrants upon vouchers so signed. The Treasurer shall
18        accept all written warrants so signed and shall be
19        released from liability for all payments made on those
20        warrants.
21        (11) Diversity, equity, and inclusion plans.
22            (A) Each applicant selected in a procurement event
23        to contract to supply renewable energy credits in
24        accordance with this subsection (c-5) and each owner
25        selected by the Department to receive a grant or
26        grants to support the construction and operation of a

 

 

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1        new energy storage facility or facilities in
2        accordance with this subsection (c-5) shall, within 60
3        days following the Commission's approval of the
4        applicant to contract to supply renewable energy
5        credits or within 60 days following execution of a
6        grant contract with the Department, as applicable,
7        submit to the Commission a diversity, equity, and
8        inclusion plan setting forth the applicant's or
9        owner's numeric goals for the diversity composition of
10        its supplier entities for the new renewable energy
11        facility or new energy storage facility, as
12        applicable, which shall be referred to for purposes of
13        this paragraph (11) as the project, and the
14        applicant's or owner's action plan and schedule for
15        achieving those goals.
16            (B) For purposes of this paragraph (11), diversity
17        composition shall be based on the percentage, which
18        shall be a minimum of 25%, of eligible expenditures
19        for contract awards for materials and services (which
20        shall be defined in the plan) to business enterprises
21        owned by minority persons, women, or persons with
22        disabilities as defined in Section 2 of the Business
23        Enterprise for Minorities, Women, and Persons with
24        Disabilities Act, to LGBTQ business enterprises, to
25        veteran-owned business enterprises, and to business
26        enterprises located in environmental justice

 

 

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1        communities. The diversity composition goals of the
2        plan may include eligible expenditures in areas for
3        vendor or supplier opportunities in addition to
4        development and construction of the project, and may
5        exclude from eligible expenditures materials and
6        services with limited market availability, limited
7        production and availability from suppliers in the
8        United States, such as solar panels and storage
9        batteries, and material and services that are subject
10        to critical energy infrastructure or cybersecurity
11        requirements or restrictions. The plan may provide
12        that the diversity composition goals may be met
13        through Tier 1 Direct or Tier 2 subcontracting
14        expenditures or a combination thereof for the project.
15            (C) The plan shall provide for, but not be limited
16        to: (i) internal initiatives, including multi-tier
17        initiatives, by the applicant or owner, or by its
18        engineering, procurement and construction contractor
19        if one is used for the project, which for purposes of
20        this paragraph (11) shall be referred to as the EPC
21        contractor, to enable diverse businesses to be
22        considered fairly for selection to provide materials
23        and services; (ii) requirements for the applicant or
24        owner or its EPC contractor to proactively solicit and
25        utilize diverse businesses to provide materials and
26        services; and (iii) requirements for the applicant or

 

 

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1        owner or its EPC contractor to hire a diverse
2        workforce for the project. The plan shall include a
3        description of the applicant's or owner's diversity
4        recruiting efforts both for the project and for other
5        areas of the applicant's or owner's business
6        operations. The plan shall provide for the imposition
7        of financial penalties on the applicant's or owner's
8        EPC contractor for failure to exercise best efforts to
9        comply with and execute the EPC contractor's diversity
10        obligations under the plan. The plan may provide for
11        the applicant or owner to set aside a portion of the
12        work on the project to serve as an incubation program
13        for qualified businesses, as specified in the plan,
14        owned by minority persons, women, persons with
15        disabilities, LGBTQ persons, and veterans, and
16        businesses located in environmental justice
17        communities, seeking to enter the renewable energy
18        industry.
19            (D) The applicant or owner may submit a revised or
20        updated plan to the Commission from time to time as
21        circumstances warrant. The applicant or owner shall
22        file annual reports with the Commission detailing the
23        applicant's or owner's progress in implementing its
24        plan and achieving its goals and any modifications the
25        applicant or owner has made to its plan to better
26        achieve its diversity, equity and inclusion goals. The

 

 

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1        applicant or owner shall file a final report on the
2        fifth June 1 following the commercial operation date
3        of the new renewable energy resource or new energy
4        storage facility, but the applicant or owner shall
5        thereafter continue to be subject to applicable
6        reporting requirements of Section 5-117 of the Public
7        Utilities Act.
8    (c-10) Equity accountability system. It is the purpose of
9this subsection (c-10) to create an equity accountability
10system, which includes the minimum equity standards for all
11renewable energy procurements, the equity category of the
12Adjustable Block Program, and the equity prioritization for
13noncompetitive procurements, that is successful in advancing
14priority access to the clean energy economy for businesses and
15workers from communities that have been excluded from economic
16opportunities in the energy sector, have been subject to
17disproportionate levels of pollution, and have
18disproportionately experienced negative public health
19outcomes. Further, it is the purpose of this subsection to
20ensure that this equity accountability system is successful in
21advancing equity across Illinois by providing access to the
22clean energy economy for businesses and workers from
23communities that have been historically excluded from economic
24opportunities in the energy sector, have been subject to
25disproportionate levels of pollution, and have
26disproportionately experienced negative public health

 

 

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1outcomes.
2        (1) Minimum equity standards. The Agency shall create
3    programs with the purpose of increasing access to and
4    development of equity eligible contractors, who are prime
5    contractors and subcontractors, across all of the programs
6    it manages. All applications for renewable energy credit
7    procurements shall comply with specific minimum equity
8    commitments. Starting in the delivery year immediately
9    following the next long-term renewable resources
10    procurement plan, at least 10% of the project workforce
11    for each entity participating in a procurement program
12    outlined in this subsection (c-10) must be done by equity
13    eligible persons or equity eligible contractors. The
14    Agency shall increase the minimum percentage each delivery
15    year thereafter by increments that ensure a statewide
16    average of 30% of the project workforce for each entity
17    participating in a procurement program is done by equity
18    eligible persons or equity eligible contractors by 2030.
19    The Agency shall propose a schedule of percentage
20    increases to the minimum equity standards in its draft
21    revised renewable energy resources procurement plan
22    submitted to the Commission for approval pursuant to
23    paragraph (5) of subsection (b) of Section 16-111.5 of the
24    Public Utilities Act. In determining these annual
25    increases, the Agency shall have the discretion to
26    establish different minimum equity standards for different

 

 

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1    types of procurements and different regions of the State
2    if the Agency finds that doing so will further the
3    purposes of this subsection (c-10). The proposed schedule
4    of annual increases shall be revisited and updated on an
5    annual basis. Revisions shall be developed with
6    stakeholder input, including from equity eligible persons,
7    equity eligible contractors, clean energy industry
8    representatives, and community-based organizations that
9    work with such persons and contractors.
10            (A) At the start of each delivery year, the Agency
11        shall require a compliance plan from each entity
12        participating in a procurement program of subsection
13        (c) of this Section that demonstrates how they will
14        achieve compliance with the minimum equity standard
15        percentage for work completed in that delivery year.
16        If an entity applies for its approved vendor or
17        designee status between delivery years, the Agency
18        shall require a compliance plan at the time of
19        application.
20            (B) Halfway through each delivery year, the Agency
21        shall require each entity participating in a
22        procurement program to confirm that it will achieve
23        compliance in that delivery year, when applicable. The
24        Agency may offer corrective action plans to entities
25        that are not on track to achieve compliance.
26            (C) At the end of each delivery year, each entity

 

 

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1        participating and completing work in that delivery
2        year in a procurement program of subsection (c) shall
3        submit a report to the Agency that demonstrates how it
4        achieved compliance with the minimum equity standards
5        percentage for that delivery year.
6            (D) The Agency shall prohibit participation in
7        procurement programs by an approved vendor or
8        designee, as applicable, or entities with which an
9        approved vendor or designee, as applicable, shares a
10        common parent company if an approved vendor or
11        designee, as applicable, failed to meet the minimum
12        equity standards for the prior delivery year. Waivers
13        approved for lack of equity eligible persons or equity
14        eligible contractors in a geographic area of a project
15        shall not count against the approved vendor or
16        designee. The Agency shall offer a corrective action
17        plan for any such entities to assist them in obtaining
18        compliance and shall allow continued access to
19        procurement programs upon an approved vendor or
20        designee demonstrating compliance.
21            (E) The Agency shall pursue efficiencies achieved
22        by combining with other approved vendor or designee
23        reporting.
24        (2) Equity accountability system within the Adjustable
25    Block program. The equity category described in item (vi)
26    of subparagraph (K) of subsection (c) is only available to

 

 

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1    applicants that are equity eligible contractors.
2        (3) Equity accountability system within competitive
3    procurements. Through its long-term renewable resources
4    procurement plan, the Agency shall develop requirements
5    for ensuring that competitive procurement processes,
6    including utility-scale solar, utility-scale wind, and
7    brownfield site photovoltaic projects, advance the equity
8    goals of this subsection (c-10). Subject to Commission
9    approval, the Agency shall develop bid application
10    requirements and a bid evaluation methodology for ensuring
11    that utilization of equity eligible contractors, whether
12    as bidders or as participants on project development, is
13    optimized, including requiring that winning or successful
14    applicants for utility-scale projects are or will partner
15    with equity eligible contractors and giving preference to
16    bids through which a higher portion of contract value
17    flows to equity eligible contractors. To the extent
18    practicable, entities participating in competitive
19    procurements shall also be required to meet all the equity
20    accountability requirements for approved vendors and their
21    designees under this subsection (c-10). In developing
22    these requirements, the Agency shall also consider whether
23    equity goals can be further advanced through additional
24    measures.
25        (4) In the first revision to the long-term renewable
26    energy resources procurement plan and each revision

 

 

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1    thereafter, the Agency shall include the following:
2            (A) The current status and number of equity
3        eligible contractors listed in the Energy Workforce
4        Equity Database designed in subsection (c-25),
5        including the number of equity eligible contractors
6        with current certifications as issued by the Agency.
7            (B) A mechanism for measuring, tracking, and
8        reporting project workforce at the approved vendor or
9        designee level, as applicable, which shall include a
10        measurement methodology and records to be made
11        available for audit by the Agency or the Program
12        Administrator.
13            (C) A program for approved vendors, designees,
14        eligible persons, and equity eligible contractors to
15        receive trainings, guidance, and other support from
16        the Agency or its designee regarding the equity
17        category outlined in item (vi) of subparagraph (K) of
18        paragraph (1) of subsection (c) and in meeting the
19        minimum equity standards of this subsection (c-10).
20            (D) A process for certifying equity eligible
21        contractors and equity eligible persons. The
22        certification process shall coordinate with the Energy
23        Workforce Equity Database set forth in subsection
24        (c-25).
25            (E) An application for waiver of the minimum
26        equity standards of this subsection, which the Agency

 

 

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1        shall have the discretion to grant in rare
2        circumstances. The Agency may grant such a waiver
3        where the applicant provides evidence of significant
4        efforts toward meeting the minimum equity commitment,
5        including: use of the Energy Workforce Equity
6        Database; efforts to hire or contract with entities
7        that hire eligible persons; and efforts to establish
8        contracting relationships with eligible contractors.
9        The Agency shall support applicants in understanding
10        the Energy Workforce Equity Database and other
11        resources for pursuing compliance of the minimum
12        equity standards. Waivers shall be project-specific,
13        unless the Agency deems it necessary to grant a waiver
14        across a portfolio of projects, and in effect for no
15        longer than one year. Any waiver extension or
16        subsequent waiver request from an applicant shall be
17        subject to the requirements of this Section and shall
18        specify efforts made to reach compliance. When
19        considering whether to grant a waiver, and to what
20        extent, the Agency shall consider the degree to which
21        similarly situated applicants have been able to meet
22        these minimum equity commitments. For repeated waiver
23        requests for specific lack of eligible persons or
24        eligible contractors available, the Agency shall make
25        recommendations to target recruitment to add such
26        eligible persons or eligible contractors to the

 

 

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1        database.
2        (5) The Agency shall collect information about work on
3    projects or portfolios of projects subject to these
4    minimum equity standards to ensure compliance with this
5    subsection (c-10). Reporting in furtherance of this
6    requirement may be combined with other annual reporting
7    requirements. Such reporting shall include proof of
8    certification of each equity eligible contractor or equity
9    eligible person during the applicable time period.
10        (6) The Agency shall keep confidential all information
11    and communication that provides private or personal
12    information.
13        (7) Modifications to the equity accountability system.
14    As part of the update of the long-term renewable resources
15    procurement plan to be initiated in 2023, or sooner if the
16    Agency deems necessary, the Agency shall determine the
17    extent to which the equity accountability system described
18    in this subsection (c-10) has advanced the goals of this
19    amendatory Act of the 102nd General Assembly, including
20    through the inclusion of equity eligible persons and
21    equity eligible contractors in renewable energy credit
22    projects. If the Agency finds that the equity
23    accountability system has failed to meet those goals to
24    its fullest potential, the Agency may revise the following
25    criteria for future Agency procurements: (A) the
26    percentage of project workforce, or other appropriate

 

 

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1    workforce measure, certified as equity eligible persons or
2    equity eligible contractors; (B) definitions for equity
3    investment eligible persons and equity investment eligible
4    community; and (C) such other modifications necessary to
5    advance the goals of this amendatory Act of the 102nd
6    General Assembly effectively. Such revised criteria may
7    also establish distinct equity accountability systems for
8    different types of procurements or different regions of
9    the State if the Agency finds that doing so will further
10    the purposes of such programs. Revisions shall be
11    developed with stakeholder input, including from equity
12    eligible persons, equity eligible contractors, and
13    community-based organizations that work with such persons
14    and contractors.
15    (c-15) Racial discrimination elimination powers and
16process.
17        (1) Purpose. It is the purpose of this subsection to
18    empower the Agency and other State actors to remedy racial
19    discrimination in Illinois' clean energy economy as
20    effectively and expediently as possible, including through
21    the use of race-conscious remedies, such as race-conscious
22    contracting and hiring goals, as consistent with State and
23    federal law.
24        (2) Racial disparity and discrimination review
25    process.
26            (A) Within one year after awarding contracts using

 

 

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1        the equity actions processes established in this
2        Section, the Agency shall publish a report evaluating
3        the effectiveness of the equity actions point criteria
4        of this Section in increasing participation of equity
5        eligible persons and equity eligible contractors. The
6        report shall disaggregate participating workers and
7        contractors by race and ethnicity. The report shall be
8        forwarded to the Governor, the General Assembly, and
9        the Illinois Commerce Commission and be made available
10        to the public.
11            (B) As soon as is practicable thereafter, the
12        Agency, in consultation with the Department of
13        Commerce and Economic Opportunity, Department of
14        Labor, and other agencies that may be relevant, shall
15        commission and publish a disparity and availability
16        study that measures the presence and impact of
17        discrimination on minority businesses and workers in
18        Illinois' clean energy economy. The Agency may hire
19        consultants and experts to conduct the disparity and
20        availability study, with the retention of those
21        consultants and experts exempt from the requirements
22        of Section 20-10 of the Illinois Procurement Code. The
23        Illinois Power Agency shall forward a copy of its
24        findings and recommendations to the Governor, the
25        General Assembly, and the Illinois Commerce
26        Commission. If the disparity and availability study

 

 

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1        establishes a strong basis in evidence that there is
2        discrimination in Illinois' clean energy economy, the
3        Agency, Department of Commerce and Economic
4        Opportunity, Department of Labor, Department of
5        Corrections, and other appropriate agencies shall take
6        appropriate remedial actions, including race-conscious
7        remedial actions as consistent with State and federal
8        law, to effectively remedy this discrimination. Such
9        remedies may include modification of the equity
10        accountability system as described in subsection
11        (c-10).
12    (c-20) Program data collection.
13        (1) Purpose. Data collection, data analysis, and
14    reporting are critical to ensure that the benefits of the
15    clean energy economy provided to Illinois residents and
16    businesses are equitably distributed across the State. The
17    Agency shall collect data from program applicants in order
18    to track and improve equitable distribution of benefits
19    across Illinois communities for all procurements the
20    Agency conducts. The Agency shall use this data to, among
21    other things, measure any potential impact of racial
22    discrimination on the distribution of benefits and provide
23    information necessary to correct any discrimination
24    through methods consistent with State and federal law.
25        (2) Agency collection of program data. The Agency
26    shall collect demographic and geographic data for each

 

 

HB2857- 154 -LRB103 25518 AMQ 51867 b

1    entity awarded contracts under any Agency-administered
2    program.
3        (3) Required information to be collected. The Agency
4    shall collect the following information from applicants
5    and program participants where applicable:
6            (A) demographic information, including racial or
7        ethnic identity for real persons employed, contracted,
8        or subcontracted through the program and owners of
9        businesses or entities that apply to receive renewable
10        energy credits from the Agency;
11            (B) geographic location of the residency of real
12        persons employed, contracted, or subcontracted through
13        the program and geographic location of the
14        headquarters of the business or entity that applies to
15        receive renewable energy credits from the Agency; and
16            (C) any other information the Agency determines is
17        necessary for the purpose of achieving the purpose of
18        this subsection.
19        (4) Publication of collected information. The Agency
20    shall publish, at least annually, information on the
21    demographics of program participants on an aggregate
22    basis.
23        (5) Nothing in this subsection shall be interpreted to
24    limit the authority of the Agency, or other agency or
25    department of the State, to require or collect demographic
26    information from applicants of other State programs.

 

 

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1    (c-25) Energy Workforce Equity Database.
2        (1) The Agency, in consultation with the Department of
3    Commerce and Economic Opportunity, shall create an Energy
4    Workforce Equity Database, and may contract with a third
5    party to do so ("database program administrator"). If the
6    Department decides to contract with a third party, that
7    third party shall be exempt from the requirements of
8    Section 20-10 of the Illinois Procurement Code. The Energy
9    Workforce Equity Database shall be a searchable database
10    of suppliers, vendors, and subcontractors for clean energy
11    industries that is:
12            (A) publicly accessible;
13            (B) easy for people to find and use;
14            (C) organized by company specialty or field;
15            (D) region-specific; and
16            (E) populated with information including, but not
17        limited to, contacts for suppliers, vendors, or
18        subcontractors who are minority and women-owned
19        business enterprise certified or who participate or
20        have participated in any of the programs described in
21        this Act.
22        (2) The Agency shall create an easily accessible,
23    public facing online tool using the database information
24    that includes, at a minimum, the following:
25            (A) a map of environmental justice and equity
26        investment eligible communities;

 

 

HB2857- 156 -LRB103 25518 AMQ 51867 b

1            (B) job postings and recruiting opportunities;
2            (C) a means by which recruiting clean energy
3        companies can find and interact with current or former
4        participants of clean energy workforce training
5        programs;
6            (D) information on workforce training service
7        providers and training opportunities available to
8        prospective workers;
9            (E) renewable energy company diversity reporting;
10            (F) a list of equity eligible contractors with
11        their contact information, types of work performed,
12        and locations worked in;
13            (G) reporting on outcomes of the programs
14        described in the workforce programs of the Energy
15        Transition Act, including information such as, but not
16        limited to, retention rate, graduation rate, and
17        placement rates of trainees; and
18            (H) information about the Jobs and Environmental
19        Justice Grant Program, the Clean Energy Jobs and
20        Justice Fund, and other sources of capital.
21        (3) The Agency shall ensure the database is regularly
22    updated to ensure information is current and shall
23    coordinate with the Department of Commerce and Economic
24    Opportunity to ensure that it includes information on
25    individuals and entities that are or have participated in
26    the Clean Jobs Workforce Network Program, Clean Energy

 

 

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1    Contractor Incubator Program, Returning Residents Clean
2    Jobs Training Program, or Clean Energy Primes Contractor
3    Accelerator Program.
4    (c-30) Enforcement of minimum equity standards. All
5entities seeking renewable energy credits must submit an
6annual report to demonstrate compliance with each of the
7equity commitments required under subsection (c-10). If the
8Agency concludes the entity has not met or maintained its
9minimum equity standards required under the applicable
10subparagraphs under subsection (c-10), the Agency shall deny
11the entity's ability to participate in procurement programs in
12subsection (c), including by withholding approved vendor or
13designee status. The Agency may require the entity to enter
14into a corrective action plan. An entity that is not
15recertified for failing to meet required equity actions in
16subparagraph (c-10) may reapply once they have a corrective
17action plan and achieve compliance with the minimum equity
18standards.
19    (d) Clean coal portfolio standard.
20        (1) The procurement plans shall include electricity
21    generated using clean coal. Each utility shall enter into
22    one or more sourcing agreements with the initial clean
23    coal facility, as provided in paragraph (3) of this
24    subsection (d), covering electricity generated by the
25    initial clean coal facility representing at least 5% of
26    each utility's total supply to serve the load of eligible

 

 

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1    retail customers in 2015 and each year thereafter, as
2    described in paragraph (3) of this subsection (d), subject
3    to the limits specified in paragraph (2) of this
4    subsection (d). It is the goal of the State that by January
5    1, 2025, 25% of the electricity used in the State shall be
6    generated by cost-effective clean coal facilities. For
7    purposes of this subsection (d), "cost-effective" means
8    that the expenditures pursuant to such sourcing agreements
9    do not cause the limit stated in paragraph (2) of this
10    subsection (d) to be exceeded and do not exceed cost-based
11    benchmarks, which shall be developed to assess all
12    expenditures pursuant to such sourcing agreements covering
13    electricity generated by clean coal facilities, other than
14    the initial clean coal facility, by the procurement
15    administrator, in consultation with the Commission staff,
16    Agency staff, and the procurement monitor and shall be
17    subject to Commission review and approval.
18        A utility party to a sourcing agreement shall
19    immediately retire any emission credits that it receives
20    in connection with the electricity covered by such
21    agreement.
22        Utilities shall maintain adequate records documenting
23    the purchases under the sourcing agreement to comply with
24    this subsection (d) and shall file an accounting with the
25    load forecast that must be filed with the Agency by July 15
26    of each year, in accordance with subsection (d) of Section

 

 

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1    16-111.5 of the Public Utilities Act.
2        A utility shall be deemed to have complied with the
3    clean coal portfolio standard specified in this subsection
4    (d) if the utility enters into a sourcing agreement as
5    required by this subsection (d).
6        (2) For purposes of this subsection (d), the required
7    execution of sourcing agreements with the initial clean
8    coal facility for a particular year shall be measured as a
9    percentage of the actual amount of electricity
10    (megawatt-hours) supplied by the electric utility to
11    eligible retail customers in the planning year ending
12    immediately prior to the agreement's execution. For
13    purposes of this subsection (d), the amount paid per
14    kilowatthour means the total amount paid for electric
15    service expressed on a per kilowatthour basis. For
16    purposes of this subsection (d), the total amount paid for
17    electric service includes without limitation amounts paid
18    for supply, transmission, distribution, surcharges and
19    add-on taxes.
20        Notwithstanding the requirements of this subsection
21    (d), the total amount paid under sourcing agreements with
22    clean coal facilities pursuant to the procurement plan for
23    any given year shall be reduced by an amount necessary to
24    limit the annual estimated average net increase due to the
25    costs of these resources included in the amounts paid by
26    eligible retail customers in connection with electric

 

 

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1    service to:
2            (A) in 2010, no more than 0.5% of the amount paid
3        per kilowatthour by those customers during the year
4        ending May 31, 2009;
5            (B) in 2011, the greater of an additional 0.5% of
6        the amount paid per kilowatthour by those customers
7        during the year ending May 31, 2010 or 1% of the amount
8        paid per kilowatthour by those customers during the
9        year ending May 31, 2009;
10            (C) in 2012, the greater of an additional 0.5% of
11        the amount paid per kilowatthour by those customers
12        during the year ending May 31, 2011 or 1.5% of the
13        amount paid per kilowatthour by those customers during
14        the year ending May 31, 2009;
15            (D) in 2013, the greater of an additional 0.5% of
16        the amount paid per kilowatthour by those customers
17        during the year ending May 31, 2012 or 2% of the amount
18        paid per kilowatthour by those customers during the
19        year ending May 31, 2009; and
20            (E) thereafter, the total amount paid under
21        sourcing agreements with clean coal facilities
22        pursuant to the procurement plan for any single year
23        shall be reduced by an amount necessary to limit the
24        estimated average net increase due to the cost of
25        these resources included in the amounts paid by
26        eligible retail customers in connection with electric

 

 

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1        service to no more than the greater of (i) 2.015% of
2        the amount paid per kilowatthour by those customers
3        during the year ending May 31, 2009 or (ii) the
4        incremental amount per kilowatthour paid for these
5        resources in 2013. These requirements may be altered
6        only as provided by statute.
7        No later than June 30, 2015, the Commission shall
8    review the limitation on the total amount paid under
9    sourcing agreements, if any, with clean coal facilities
10    pursuant to this subsection (d) and report to the General
11    Assembly its findings as to whether that limitation unduly
12    constrains the amount of electricity generated by
13    cost-effective clean coal facilities that is covered by
14    sourcing agreements.
15        (3) Initial clean coal facility. In order to promote
16    development of clean coal facilities in Illinois, each
17    electric utility subject to this Section shall execute a
18    sourcing agreement to source electricity from a proposed
19    clean coal facility in Illinois (the "initial clean coal
20    facility") that will have a nameplate capacity of at least
21    500 MW when commercial operation commences, that has a
22    final Clean Air Act permit on June 1, 2009 (the effective
23    date of Public Act 95-1027), and that will meet the
24    definition of clean coal facility in Section 1-10 of this
25    Act when commercial operation commences. The sourcing
26    agreements with this initial clean coal facility shall be

 

 

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1    subject to both approval of the initial clean coal
2    facility by the General Assembly and satisfaction of the
3    requirements of paragraph (4) of this subsection (d) and
4    shall be executed within 90 days after any such approval
5    by the General Assembly. The Agency and the Commission
6    shall have authority to inspect all books and records
7    associated with the initial clean coal facility during the
8    term of such a sourcing agreement. A utility's sourcing
9    agreement for electricity produced by the initial clean
10    coal facility shall include:
11            (A) a formula contractual price (the "contract
12        price") approved pursuant to paragraph (4) of this
13        subsection (d), which shall:
14                (i) be determined using a cost of service
15            methodology employing either a level or deferred
16            capital recovery component, based on a capital
17            structure consisting of 45% equity and 55% debt,
18            and a return on equity as may be approved by the
19            Federal Energy Regulatory Commission, which in any
20            case may not exceed the lower of 11.5% or the rate
21            of return approved by the General Assembly
22            pursuant to paragraph (4) of this subsection (d);
23            and
24                (ii) provide that all miscellaneous net
25            revenue, including but not limited to net revenue
26            from the sale of emission allowances, if any,

 

 

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1            substitute natural gas, if any, grants or other
2            support provided by the State of Illinois or the
3            United States Government, firm transmission
4            rights, if any, by-products produced by the
5            facility, energy or capacity derived from the
6            facility and not covered by a sourcing agreement
7            pursuant to paragraph (3) of this subsection (d)
8            or item (5) of subsection (d) of Section 16-115 of
9            the Public Utilities Act, whether generated from
10            the synthesis gas derived from coal, from SNG, or
11            from natural gas, shall be credited against the
12            revenue requirement for this initial clean coal
13            facility;
14            (B) power purchase provisions, which shall:
15                (i) provide that the utility party to such
16            sourcing agreement shall pay the contract price
17            for electricity delivered under such sourcing
18            agreement;
19                (ii) require delivery of electricity to the
20            regional transmission organization market of the
21            utility that is party to such sourcing agreement;
22                (iii) require the utility party to such
23            sourcing agreement to buy from the initial clean
24            coal facility in each hour an amount of energy
25            equal to all clean coal energy made available from
26            the initial clean coal facility during such hour

 

 

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1            times a fraction, the numerator of which is such
2            utility's retail market sales of electricity
3            (expressed in kilowatthours sold) in the State
4            during the prior calendar month and the
5            denominator of which is the total retail market
6            sales of electricity (expressed in kilowatthours
7            sold) in the State by utilities during such prior
8            month and the sales of electricity (expressed in
9            kilowatthours sold) in the State by alternative
10            retail electric suppliers during such prior month
11            that are subject to the requirements of this
12            subsection (d) and paragraph (5) of subsection (d)
13            of Section 16-115 of the Public Utilities Act,
14            provided that the amount purchased by the utility
15            in any year will be limited by paragraph (2) of
16            this subsection (d); and
17                (iv) be considered pre-existing contracts in
18            such utility's procurement plans for eligible
19            retail customers;
20            (C) contract for differences provisions, which
21        shall:
22                (i) require the utility party to such sourcing
23            agreement to contract with the initial clean coal
24            facility in each hour with respect to an amount of
25            energy equal to all clean coal energy made
26            available from the initial clean coal facility

 

 

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1            during such hour times a fraction, the numerator
2            of which is such utility's retail market sales of
3            electricity (expressed in kilowatthours sold) in
4            the utility's service territory in the State
5            during the prior calendar month and the
6            denominator of which is the total retail market
7            sales of electricity (expressed in kilowatthours
8            sold) in the State by utilities during such prior
9            month and the sales of electricity (expressed in
10            kilowatthours sold) in the State by alternative
11            retail electric suppliers during such prior month
12            that are subject to the requirements of this
13            subsection (d) and paragraph (5) of subsection (d)
14            of Section 16-115 of the Public Utilities Act,
15            provided that the amount paid by the utility in
16            any year will be limited by paragraph (2) of this
17            subsection (d);
18                (ii) provide that the utility's payment
19            obligation in respect of the quantity of
20            electricity determined pursuant to the preceding
21            clause (i) shall be limited to an amount equal to
22            (1) the difference between the contract price
23            determined pursuant to subparagraph (A) of
24            paragraph (3) of this subsection (d) and the
25            day-ahead price for electricity delivered to the
26            regional transmission organization market of the

 

 

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1            utility that is party to such sourcing agreement
2            (or any successor delivery point at which such
3            utility's supply obligations are financially
4            settled on an hourly basis) (the "reference
5            price") on the day preceding the day on which the
6            electricity is delivered to the initial clean coal
7            facility busbar, multiplied by (2) the quantity of
8            electricity determined pursuant to the preceding
9            clause (i); and
10                (iii) not require the utility to take physical
11            delivery of the electricity produced by the
12            facility;
13            (D) general provisions, which shall:
14                (i) specify a term of no more than 30 years,
15            commencing on the commercial operation date of the
16            facility;
17                (ii) provide that utilities shall maintain
18            adequate records documenting purchases under the
19            sourcing agreements entered into to comply with
20            this subsection (d) and shall file an accounting
21            with the load forecast that must be filed with the
22            Agency by July 15 of each year, in accordance with
23            subsection (d) of Section 16-111.5 of the Public
24            Utilities Act;
25                (iii) provide that all costs associated with
26            the initial clean coal facility will be

 

 

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1            periodically reported to the Federal Energy
2            Regulatory Commission and to purchasers in
3            accordance with applicable laws governing
4            cost-based wholesale power contracts;
5                (iv) permit the Illinois Power Agency to
6            assume ownership of the initial clean coal
7            facility, without monetary consideration and
8            otherwise on reasonable terms acceptable to the
9            Agency, if the Agency so requests no less than 3
10            years prior to the end of the stated contract
11            term;
12                (v) require the owner of the initial clean
13            coal facility to provide documentation to the
14            Commission each year, starting in the facility's
15            first year of commercial operation, accurately
16            reporting the quantity of carbon emissions from
17            the facility that have been captured and
18            sequestered and report any quantities of carbon
19            released from the site or sites at which carbon
20            emissions were sequestered in prior years, based
21            on continuous monitoring of such sites. If, in any
22            year after the first year of commercial operation,
23            the owner of the facility fails to demonstrate
24            that the initial clean coal facility captured and
25            sequestered at least 50% of the total carbon
26            emissions that the facility would otherwise emit

 

 

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1            or that sequestration of emissions from prior
2            years has failed, resulting in the release of
3            carbon dioxide into the atmosphere, the owner of
4            the facility must offset excess emissions. Any
5            such carbon offsets must be permanent, additional,
6            verifiable, real, located within the State of
7            Illinois, and legally and practicably enforceable.
8            The cost of such offsets for the facility that are
9            not recoverable shall not exceed $15 million in
10            any given year. No costs of any such purchases of
11            carbon offsets may be recovered from a utility or
12            its customers. All carbon offsets purchased for
13            this purpose and any carbon emission credits
14            associated with sequestration of carbon from the
15            facility must be permanently retired. The initial
16            clean coal facility shall not forfeit its
17            designation as a clean coal facility if the
18            facility fails to fully comply with the applicable
19            carbon sequestration requirements in any given
20            year, provided the requisite offsets are
21            purchased. However, the Attorney General, on
22            behalf of the People of the State of Illinois, may
23            specifically enforce the facility's sequestration
24            requirement and the other terms of this contract
25            provision. Compliance with the sequestration
26            requirements and offset purchase requirements

 

 

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1            specified in paragraph (3) of this subsection (d)
2            shall be reviewed annually by an independent
3            expert retained by the owner of the initial clean
4            coal facility, with the advance written approval
5            of the Attorney General. The Commission may, in
6            the course of the review specified in item (vii),
7            reduce the allowable return on equity for the
8            facility if the facility willfully fails to comply
9            with the carbon capture and sequestration
10            requirements set forth in this item (v);
11                (vi) include limits on, and accordingly
12            provide for modification of, the amount the
13            utility is required to source under the sourcing
14            agreement consistent with paragraph (2) of this
15            subsection (d);
16                (vii) require Commission review: (1) to
17            determine the justness, reasonableness, and
18            prudence of the inputs to the formula referenced
19            in subparagraphs (A)(i) through (A)(iii) of
20            paragraph (3) of this subsection (d), prior to an
21            adjustment in those inputs including, without
22            limitation, the capital structure and return on
23            equity, fuel costs, and other operations and
24            maintenance costs and (2) to approve the costs to
25            be passed through to customers under the sourcing
26            agreement by which the utility satisfies its

 

 

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1            statutory obligations. Commission review shall
2            occur no less than every 3 years, regardless of
3            whether any adjustments have been proposed, and
4            shall be completed within 9 months;
5                (viii) limit the utility's obligation to such
6            amount as the utility is allowed to recover
7            through tariffs filed with the Commission,
8            provided that neither the clean coal facility nor
9            the utility waives any right to assert federal
10            pre-emption or any other argument in response to a
11            purported disallowance of recovery costs;
12                (ix) limit the utility's or alternative retail
13            electric supplier's obligation to incur any
14            liability until such time as the facility is in
15            commercial operation and generating power and
16            energy and such power and energy is being
17            delivered to the facility busbar;
18                (x) provide that the owner or owners of the
19            initial clean coal facility, which is the
20            counterparty to such sourcing agreement, shall
21            have the right from time to time to elect whether
22            the obligations of the utility party thereto shall
23            be governed by the power purchase provisions or
24            the contract for differences provisions;
25                (xi) append documentation showing that the
26            formula rate and contract, insofar as they relate

 

 

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1            to the power purchase provisions, have been
2            approved by the Federal Energy Regulatory
3            Commission pursuant to Section 205 of the Federal
4            Power Act;
5                (xii) provide that any changes to the terms of
6            the contract, insofar as such changes relate to
7            the power purchase provisions, are subject to
8            review under the public interest standard applied
9            by the Federal Energy Regulatory Commission
10            pursuant to Sections 205 and 206 of the Federal
11            Power Act; and
12                (xiii) conform with customary lender
13            requirements in power purchase agreements used as
14            the basis for financing non-utility generators.
15        (4) Effective date of sourcing agreements with the
16    initial clean coal facility. Any proposed sourcing
17    agreement with the initial clean coal facility shall not
18    become effective unless the following reports are prepared
19    and submitted and authorizations and approvals obtained:
20            (i) Facility cost report. The owner of the initial
21        clean coal facility shall submit to the Commission,
22        the Agency, and the General Assembly a front-end
23        engineering and design study, a facility cost report,
24        method of financing (including but not limited to
25        structure and associated costs), and an operating and
26        maintenance cost quote for the facility (collectively

 

 

HB2857- 172 -LRB103 25518 AMQ 51867 b

1        "facility cost report"), which shall be prepared in
2        accordance with the requirements of this paragraph (4)
3        of subsection (d) of this Section, and shall provide
4        the Commission and the Agency access to the work
5        papers, relied upon documents, and any other backup
6        documentation related to the facility cost report.
7            (ii) Commission report. Within 6 months following
8        receipt of the facility cost report, the Commission,
9        in consultation with the Agency, shall submit a report
10        to the General Assembly setting forth its analysis of
11        the facility cost report. Such report shall include,
12        but not be limited to, a comparison of the costs
13        associated with electricity generated by the initial
14        clean coal facility to the costs associated with
15        electricity generated by other types of generation
16        facilities, an analysis of the rate impacts on
17        residential and small business customers over the life
18        of the sourcing agreements, and an analysis of the
19        likelihood that the initial clean coal facility will
20        commence commercial operation by and be delivering
21        power to the facility's busbar by 2016. To assist in
22        the preparation of its report, the Commission, in
23        consultation with the Agency, may hire one or more
24        experts or consultants, the costs of which shall be
25        paid for by the owner of the initial clean coal
26        facility. The Commission and Agency may begin the

 

 

HB2857- 173 -LRB103 25518 AMQ 51867 b

1        process of selecting such experts or consultants prior
2        to receipt of the facility cost report.
3            (iii) General Assembly approval. The proposed
4        sourcing agreements shall not take effect unless,
5        based on the facility cost report and the Commission's
6        report, the General Assembly enacts authorizing
7        legislation approving (A) the projected price, stated
8        in cents per kilowatthour, to be charged for
9        electricity generated by the initial clean coal
10        facility, (B) the projected impact on residential and
11        small business customers' bills over the life of the
12        sourcing agreements, and (C) the maximum allowable
13        return on equity for the project; and
14            (iv) Commission review. If the General Assembly
15        enacts authorizing legislation pursuant to
16        subparagraph (iii) approving a sourcing agreement, the
17        Commission shall, within 90 days of such enactment,
18        complete a review of such sourcing agreement. During
19        such time period, the Commission shall implement any
20        directive of the General Assembly, resolve any
21        disputes between the parties to the sourcing agreement
22        concerning the terms of such agreement, approve the
23        form of such agreement, and issue an order finding
24        that the sourcing agreement is prudent and reasonable.
25        The facility cost report shall be prepared as follows:
26            (A) The facility cost report shall be prepared by

 

 

HB2857- 174 -LRB103 25518 AMQ 51867 b

1        duly licensed engineering and construction firms
2        detailing the estimated capital costs payable to one
3        or more contractors or suppliers for the engineering,
4        procurement and construction of the components
5        comprising the initial clean coal facility and the
6        estimated costs of operation and maintenance of the
7        facility. The facility cost report shall include:
8                (i) an estimate of the capital cost of the
9            core plant based on one or more front end
10            engineering and design studies for the
11            gasification island and related facilities. The
12            core plant shall include all civil, structural,
13            mechanical, electrical, control, and safety
14            systems.
15                (ii) an estimate of the capital cost of the
16            balance of the plant, including any capital costs
17            associated with sequestration of carbon dioxide
18            emissions and all interconnects and interfaces
19            required to operate the facility, such as
20            transmission of electricity, construction or
21            backfeed power supply, pipelines to transport
22            substitute natural gas or carbon dioxide, potable
23            water supply, natural gas supply, water supply,
24            water discharge, landfill, access roads, and coal
25            delivery.
26            The quoted construction costs shall be expressed

 

 

HB2857- 175 -LRB103 25518 AMQ 51867 b

1        in nominal dollars as of the date that the quote is
2        prepared and shall include capitalized financing costs
3        during construction, taxes, insurance, and other
4        owner's costs, and an assumed escalation in materials
5        and labor beyond the date as of which the construction
6        cost quote is expressed.
7            (B) The front end engineering and design study for
8        the gasification island and the cost study for the
9        balance of plant shall include sufficient design work
10        to permit quantification of major categories of
11        materials, commodities and labor hours, and receipt of
12        quotes from vendors of major equipment required to
13        construct and operate the clean coal facility.
14            (C) The facility cost report shall also include an
15        operating and maintenance cost quote that will provide
16        the estimated cost of delivered fuel, personnel,
17        maintenance contracts, chemicals, catalysts,
18        consumables, spares, and other fixed and variable
19        operations and maintenance costs. The delivered fuel
20        cost estimate will be provided by a recognized third
21        party expert or experts in the fuel and transportation
22        industries. The balance of the operating and
23        maintenance cost quote, excluding delivered fuel
24        costs, will be developed based on the inputs provided
25        by duly licensed engineering and construction firms
26        performing the construction cost quote, potential

 

 

HB2857- 176 -LRB103 25518 AMQ 51867 b

1        vendors under long-term service agreements and plant
2        operating agreements, or recognized third party plant
3        operator or operators.
4            The operating and maintenance cost quote
5        (including the cost of the front end engineering and
6        design study) shall be expressed in nominal dollars as
7        of the date that the quote is prepared and shall
8        include taxes, insurance, and other owner's costs, and
9        an assumed escalation in materials and labor beyond
10        the date as of which the operating and maintenance
11        cost quote is expressed.
12            (D) The facility cost report shall also include an
13        analysis of the initial clean coal facility's ability
14        to deliver power and energy into the applicable
15        regional transmission organization markets and an
16        analysis of the expected capacity factor for the
17        initial clean coal facility.
18            (E) Amounts paid to third parties unrelated to the
19        owner or owners of the initial clean coal facility to
20        prepare the core plant construction cost quote,
21        including the front end engineering and design study,
22        and the operating and maintenance cost quote will be
23        reimbursed through Coal Development Bonds.
24        (5) Re-powering and retrofitting coal-fired power
25    plants previously owned by Illinois utilities to qualify
26    as clean coal facilities. During the 2009 procurement

 

 

HB2857- 177 -LRB103 25518 AMQ 51867 b

1    planning process and thereafter, the Agency and the
2    Commission shall consider sourcing agreements covering
3    electricity generated by power plants that were previously
4    owned by Illinois utilities and that have been or will be
5    converted into clean coal facilities, as defined by
6    Section 1-10 of this Act. Pursuant to such procurement
7    planning process, the owners of such facilities may
8    propose to the Agency sourcing agreements with utilities
9    and alternative retail electric suppliers required to
10    comply with subsection (d) of this Section and item (5) of
11    subsection (d) of Section 16-115 of the Public Utilities
12    Act, covering electricity generated by such facilities. In
13    the case of sourcing agreements that are power purchase
14    agreements, the contract price for electricity sales shall
15    be established on a cost of service basis. In the case of
16    sourcing agreements that are contracts for differences,
17    the contract price from which the reference price is
18    subtracted shall be established on a cost of service
19    basis. The Agency and the Commission may approve any such
20    utility sourcing agreements that do not exceed cost-based
21    benchmarks developed by the procurement administrator, in
22    consultation with the Commission staff, Agency staff and
23    the procurement monitor, subject to Commission review and
24    approval. The Commission shall have authority to inspect
25    all books and records associated with these clean coal
26    facilities during the term of any such contract.

 

 

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1        (6) Costs incurred under this subsection (d) or
2    pursuant to a contract entered into under this subsection
3    (d) shall be deemed prudently incurred and reasonable in
4    amount and the electric utility shall be entitled to full
5    cost recovery pursuant to the tariffs filed with the
6    Commission.
7    (d-5) Zero emission standard.
8        (1) Beginning with the delivery year commencing on
9    June 1, 2017, the Agency shall, for electric utilities
10    that serve at least 100,000 retail customers in this
11    State, procure contracts with zero emission facilities
12    that are reasonably capable of generating cost-effective
13    zero emission credits in an amount approximately equal to
14    16% of the actual amount of electricity delivered by each
15    electric utility to retail customers in the State during
16    calendar year 2014. For an electric utility serving fewer
17    than 100,000 retail customers in this State that
18    requested, under Section 16-111.5 of the Public Utilities
19    Act, that the Agency procure power and energy for all or a
20    portion of the utility's Illinois load for the delivery
21    year commencing June 1, 2016, the Agency shall procure
22    contracts with zero emission facilities that are
23    reasonably capable of generating cost-effective zero
24    emission credits in an amount approximately equal to 16%
25    of the portion of power and energy to be procured by the
26    Agency for the utility. The duration of the contracts

 

 

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1    procured under this subsection (d-5) shall be for a term
2    of 10 years ending May 31, 2027. The quantity of zero
3    emission credits to be procured under the contracts shall
4    be all of the zero emission credits generated by the zero
5    emission facility in each delivery year; however, if the
6    zero emission facility is owned by more than one entity,
7    then the quantity of zero emission credits to be procured
8    under the contracts shall be the amount of zero emission
9    credits that are generated from the portion of the zero
10    emission facility that is owned by the winning supplier.
11        The 16% value identified in this paragraph (1) is the
12    average of the percentage targets in subparagraph (B) of
13    paragraph (1) of subsection (c) of this Section for the 5
14    delivery years beginning June 1, 2017.
15        The procurement process shall be subject to the
16    following provisions:
17            (A) Those zero emission facilities that intend to
18        participate in the procurement shall submit to the
19        Agency the following eligibility information for each
20        zero emission facility on or before the date
21        established by the Agency:
22                (i) the in-service date and remaining useful
23            life of the zero emission facility;
24                (ii) the amount of power generated annually
25            for each of the years 2005 through 2015, and the
26            projected zero emission credits to be generated

 

 

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1            over the remaining useful life of the zero
2            emission facility, which shall be used to
3            determine the capability of each facility;
4                (iii) the annual zero emission facility cost
5            projections, expressed on a per megawatthour
6            basis, over the next 6 delivery years, which shall
7            include the following: operation and maintenance
8            expenses; fully allocated overhead costs, which
9            shall be allocated using the methodology developed
10            by the Institute for Nuclear Power Operations;
11            fuel expenditures; non-fuel capital expenditures;
12            spent fuel expenditures; a return on working
13            capital; the cost of operational and market risks
14            that could be avoided by ceasing operation; and
15            any other costs necessary for continued
16            operations, provided that "necessary" means, for
17            purposes of this item (iii), that the costs could
18            reasonably be avoided only by ceasing operations
19            of the zero emission facility; and
20                (iv) a commitment to continue operating, for
21            the duration of the contract or contracts executed
22            under the procurement held under this subsection
23            (d-5), the zero emission facility that produces
24            the zero emission credits to be procured in the
25            procurement.
26            The information described in item (iii) of this

 

 

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1        subparagraph (A) may be submitted on a confidential
2        basis and shall be treated and maintained by the
3        Agency, the procurement administrator, and the
4        Commission as confidential and proprietary and exempt
5        from disclosure under subparagraphs (a) and (g) of
6        paragraph (1) of Section 7 of the Freedom of
7        Information Act. The Office of Attorney General shall
8        have access to, and maintain the confidentiality of,
9        such information pursuant to Section 6.5 of the
10        Attorney General Act.
11            (B) The price for each zero emission credit
12        procured under this subsection (d-5) for each delivery
13        year shall be in an amount that equals the Social Cost
14        of Carbon, expressed on a price per megawatthour
15        basis. However, to ensure that the procurement remains
16        affordable to retail customers in this State if
17        electricity prices increase, the price in an
18        applicable delivery year shall be reduced below the
19        Social Cost of Carbon by the amount ("Price
20        Adjustment") by which the market price index for the
21        applicable delivery year exceeds the baseline market
22        price index for the consecutive 12-month period ending
23        May 31, 2016. If the Price Adjustment is greater than
24        or equal to the Social Cost of Carbon in an applicable
25        delivery year, then no payments shall be due in that
26        delivery year. The components of this calculation are

 

 

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1        defined as follows:
2                (i) Social Cost of Carbon: The Social Cost of
3            Carbon is $16.50 per megawatthour, which is based
4            on the U.S. Interagency Working Group on Social
5            Cost of Carbon's price in the August 2016
6            Technical Update using a 3% discount rate,
7            adjusted for inflation for each year of the
8            program. Beginning with the delivery year
9            commencing June 1, 2023, the price per
10            megawatthour shall increase by $1 per
11            megawatthour, and continue to increase by an
12            additional $1 per megawatthour each delivery year
13            thereafter.
14                (ii) Baseline market price index: The baseline
15            market price index for the consecutive 12-month
16            period ending May 31, 2016 is $31.40 per
17            megawatthour, which is based on the sum of (aa)
18            the average day-ahead energy price across all
19            hours of such 12-month period at the PJM
20            Interconnection LLC Northern Illinois Hub, (bb)
21            50% multiplied by the Base Residual Auction, or
22            its successor, capacity price for the rest of the
23            RTO zone group determined by PJM Interconnection
24            LLC, divided by 24 hours per day, and (cc) 50%
25            multiplied by the Planning Resource Auction, or
26            its successor, capacity price for Zone 4

 

 

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1            determined by the Midcontinent Independent System
2            Operator, Inc., divided by 24 hours per day.
3                (iii) Market price index: The market price
4            index for a delivery year shall be the sum of
5            projected energy prices and projected capacity
6            prices determined as follows:
7                    (aa) Projected energy prices: the
8                projected energy prices for the applicable
9                delivery year shall be calculated once for the
10                year using the forward market price for the
11                PJM Interconnection, LLC Northern Illinois
12                Hub. The forward market price shall be
13                calculated as follows: the energy forward
14                prices for each month of the applicable
15                delivery year averaged for each trade date
16                during the calendar year immediately preceding
17                that delivery year to produce a single energy
18                forward price for the delivery year. The
19                forward market price calculation shall use
20                data published by the Intercontinental
21                Exchange, or its successor.
22                    (bb) Projected capacity prices:
23                        (I) For the delivery years commencing
24                    June 1, 2017, June 1, 2018, and June 1,
25                    2019, the projected capacity price shall
26                    be equal to the sum of (1) 50% multiplied

 

 

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1                    by the Base Residual Auction, or its
2                    successor, price for the rest of the RTO
3                    zone group as determined by PJM
4                    Interconnection LLC, divided by 24 hours
5                    per day and, (2) 50% multiplied by the
6                    resource auction price determined in the
7                    resource auction administered by the
8                    Midcontinent Independent System Operator,
9                    Inc., in which the largest percentage of
10                    load cleared for Local Resource Zone 4,
11                    divided by 24 hours per day, and where
12                    such price is determined by the
13                    Midcontinent Independent System Operator,
14                    Inc.
15                        (II) For the delivery year commencing
16                    June 1, 2020, and each year thereafter,
17                    the projected capacity price shall be
18                    equal to the sum of (1) 50% multiplied by
19                    the Base Residual Auction, or its
20                    successor, price for the ComEd zone as
21                    determined by PJM Interconnection LLC,
22                    divided by 24 hours per day, and (2) 50%
23                    multiplied by the resource auction price
24                    determined in the resource auction
25                    administered by the Midcontinent
26                    Independent System Operator, Inc., in

 

 

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1                    which the largest percentage of load
2                    cleared for Local Resource Zone 4, divided
3                    by 24 hours per day, and where such price
4                    is determined by the Midcontinent
5                    Independent System Operator, Inc.
6            For purposes of this subsection (d-5):
7                "Rest of the RTO" and "ComEd Zone" shall have
8            the meaning ascribed to them by PJM
9            Interconnection, LLC.
10                "RTO" means regional transmission
11            organization.
12            (C) No later than 45 days after June 1, 2017 (the
13        effective date of Public Act 99-906), the Agency shall
14        publish its proposed zero emission standard
15        procurement plan. The plan shall be consistent with
16        the provisions of this paragraph (1) and shall provide
17        that winning bids shall be selected based on public
18        interest criteria that include, but are not limited
19        to, minimizing carbon dioxide emissions that result
20        from electricity consumed in Illinois and minimizing
21        sulfur dioxide, nitrogen oxide, and particulate matter
22        emissions that adversely affect the citizens of this
23        State. In particular, the selection of winning bids
24        shall take into account the incremental environmental
25        benefits resulting from the procurement, such as any
26        existing environmental benefits that are preserved by

 

 

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1        the procurements held under Public Act 99-906 and
2        would cease to exist if the procurements were not
3        held, including the preservation of zero emission
4        facilities. The plan shall also describe in detail how
5        each public interest factor shall be considered and
6        weighted in the bid selection process to ensure that
7        the public interest criteria are applied to the
8        procurement and given full effect.
9            For purposes of developing the plan, the Agency
10        shall consider any reports issued by a State agency,
11        board, or commission under House Resolution 1146 of
12        the 98th General Assembly and paragraph (4) of
13        subsection (d) of this Section, as well as publicly
14        available analyses and studies performed by or for
15        regional transmission organizations that serve the
16        State and their independent market monitors.
17            Upon publishing of the zero emission standard
18        procurement plan, copies of the plan shall be posted
19        and made publicly available on the Agency's website.
20        All interested parties shall have 10 days following
21        the date of posting to provide comment to the Agency on
22        the plan. All comments shall be posted to the Agency's
23        website. Following the end of the comment period, but
24        no more than 60 days later than June 1, 2017 (the
25        effective date of Public Act 99-906), the Agency shall
26        revise the plan as necessary based on the comments

 

 

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1        received and file its zero emission standard
2        procurement plan with the Commission.
3            If the Commission determines that the plan will
4        result in the procurement of cost-effective zero
5        emission credits, then the Commission shall, after
6        notice and hearing, but no later than 45 days after the
7        Agency filed the plan, approve the plan or approve
8        with modification. For purposes of this subsection
9        (d-5), "cost effective" means the projected costs of
10        procuring zero emission credits from zero emission
11        facilities do not cause the limit stated in paragraph
12        (2) of this subsection to be exceeded.
13            (C-5) As part of the Commission's review and
14        acceptance or rejection of the procurement results,
15        the Commission shall, in its public notice of
16        successful bidders:
17                (i) identify how the winning bids satisfy the
18            public interest criteria described in subparagraph
19            (C) of this paragraph (1) of minimizing carbon
20            dioxide emissions that result from electricity
21            consumed in Illinois and minimizing sulfur
22            dioxide, nitrogen oxide, and particulate matter
23            emissions that adversely affect the citizens of
24            this State;
25                (ii) specifically address how the selection of
26            winning bids takes into account the incremental

 

 

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1            environmental benefits resulting from the
2            procurement, including any existing environmental
3            benefits that are preserved by the procurements
4            held under Public Act 99-906 and would have ceased
5            to exist if the procurements had not been held,
6            such as the preservation of zero emission
7            facilities;
8                (iii) quantify the environmental benefit of
9            preserving the resources identified in item (ii)
10            of this subparagraph (C-5), including the
11            following:
12                    (aa) the value of avoided greenhouse gas
13                emissions measured as the product of the zero
14                emission facilities' output over the contract
15                term multiplied by the U.S. Environmental
16                Protection Agency eGrid subregion carbon
17                dioxide emission rate and the U.S. Interagency
18                Working Group on Social Cost of Carbon's price
19                in the August 2016 Technical Update using a 3%
20                discount rate, adjusted for inflation for each
21                delivery year; and
22                    (bb) the costs of replacement with other
23                zero carbon dioxide resources, including wind
24                and photovoltaic, based upon the simple
25                average of the following:
26                        (I) the price, or if there is more

 

 

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1                    than one price, the average of the prices,
2                    paid for renewable energy credits from new
3                    utility-scale wind projects in the
4                    procurement events specified in item (i)
5                    of subparagraph (G) of paragraph (1) of
6                    subsection (c) of this Section; and
7                        (II) the price, or if there is more
8                    than one price, the average of the prices,
9                    paid for renewable energy credits from new
10                    utility-scale solar projects and
11                    brownfield site photovoltaic projects in
12                    the procurement events specified in item
13                    (ii) of subparagraph (G) of paragraph (1)
14                    of subsection (c) of this Section and,
15                    after January 1, 2015, renewable energy
16                    credits from photovoltaic distributed
17                    generation projects in procurement events
18                    held under subsection (c) of this Section.
19            Each utility shall enter into binding contractual
20        arrangements with the winning suppliers.
21            The procurement described in this subsection
22        (d-5), including, but not limited to, the execution of
23        all contracts procured, shall be completed no later
24        than May 10, 2017. Based on the effective date of
25        Public Act 99-906, the Agency and Commission may, as
26        appropriate, modify the various dates and timelines

 

 

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1        under this subparagraph and subparagraphs (C) and (D)
2        of this paragraph (1). The procurement and plan
3        approval processes required by this subsection (d-5)
4        shall be conducted in conjunction with the procurement
5        and plan approval processes required by subsection (c)
6        of this Section and Section 16-111.5 of the Public
7        Utilities Act, to the extent practicable.
8        Notwithstanding whether a procurement event is
9        conducted under Section 16-111.5 of the Public
10        Utilities Act, the Agency shall immediately initiate a
11        procurement process on June 1, 2017 (the effective
12        date of Public Act 99-906).
13            (D) Following the procurement event described in
14        this paragraph (1) and consistent with subparagraph
15        (B) of this paragraph (1), the Agency shall calculate
16        the payments to be made under each contract for the
17        next delivery year based on the market price index for
18        that delivery year. The Agency shall publish the
19        payment calculations no later than May 25, 2017 and
20        every May 25 thereafter.
21            (E) Notwithstanding the requirements of this
22        subsection (d-5), the contracts executed under this
23        subsection (d-5) shall provide that the zero emission
24        facility may, as applicable, suspend or terminate
25        performance under the contracts in the following
26        instances:

 

 

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1                (i) A zero emission facility shall be excused
2            from its performance under the contract for any
3            cause beyond the control of the resource,
4            including, but not restricted to, acts of God,
5            flood, drought, earthquake, storm, fire,
6            lightning, epidemic, war, riot, civil disturbance
7            or disobedience, labor dispute, labor or material
8            shortage, sabotage, acts of public enemy,
9            explosions, orders, regulations or restrictions
10            imposed by governmental, military, or lawfully
11            established civilian authorities, which, in any of
12            the foregoing cases, by exercise of commercially
13            reasonable efforts the zero emission facility
14            could not reasonably have been expected to avoid,
15            and which, by the exercise of commercially
16            reasonable efforts, it has been unable to
17            overcome. In such event, the zero emission
18            facility shall be excused from performance for the
19            duration of the event, including, but not limited
20            to, delivery of zero emission credits, and no
21            payment shall be due to the zero emission facility
22            during the duration of the event.
23                (ii) A zero emission facility shall be
24            permitted to terminate the contract if legislation
25            is enacted into law by the General Assembly that
26            imposes or authorizes a new tax, special

 

 

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1            assessment, or fee on the generation of
2            electricity, the ownership or leasehold of a
3            generating unit, or the privilege or occupation of
4            such generation, ownership, or leasehold of
5            generation units by a zero emission facility.
6            However, the provisions of this item (ii) do not
7            apply to any generally applicable tax, special
8            assessment or fee, or requirements imposed by
9            federal law.
10                (iii) A zero emission facility shall be
11            permitted to terminate the contract in the event
12            that the resource requires capital expenditures in
13            excess of $40,000,000 that were neither known nor
14            reasonably foreseeable at the time it executed the
15            contract and that a prudent owner or operator of
16            such resource would not undertake.
17                (iv) A zero emission facility shall be
18            permitted to terminate the contract in the event
19            the Nuclear Regulatory Commission terminates the
20            resource's license.
21            (F) If the zero emission facility elects to
22        terminate a contract under subparagraph (E) of this
23        paragraph (1), then the Commission shall reopen the
24        docket in which the Commission approved the zero
25        emission standard procurement plan under subparagraph
26        (C) of this paragraph (1) and, after notice and

 

 

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1        hearing, enter an order acknowledging the contract
2        termination election if such termination is consistent
3        with the provisions of this subsection (d-5).
4        (2) For purposes of this subsection (d-5), the amount
5    paid per kilowatthour means the total amount paid for
6    electric service expressed on a per kilowatthour basis.
7    For purposes of this subsection (d-5), the total amount
8    paid for electric service includes, without limitation,
9    amounts paid for supply, transmission, distribution,
10    surcharges, and add-on taxes.
11        Notwithstanding the requirements of this subsection
12    (d-5), the contracts executed under this subsection (d-5)
13    shall provide that the total of zero emission credits
14    procured under a procurement plan shall be subject to the
15    limitations of this paragraph (2). For each delivery year,
16    the contractual volume receiving payments in such year
17    shall be reduced for all retail customers based on the
18    amount necessary to limit the net increase that delivery
19    year to the costs of those credits included in the amounts
20    paid by eligible retail customers in connection with
21    electric service to no more than 1.65% of the amount paid
22    per kilowatthour by eligible retail customers during the
23    year ending May 31, 2009. The result of this computation
24    shall apply to and reduce the procurement for all retail
25    customers, and all those customers shall pay the same
26    single, uniform cents per kilowatthour charge under

 

 

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1    subsection (k) of Section 16-108 of the Public Utilities
2    Act. To arrive at a maximum dollar amount of zero emission
3    credits to be paid for the particular delivery year, the
4    resulting per kilowatthour amount shall be applied to the
5    actual amount of kilowatthours of electricity delivered by
6    the electric utility in the delivery year immediately
7    prior to the procurement, to all retail customers in its
8    service territory. Unpaid contractual volume for any
9    delivery year shall be paid in any subsequent delivery
10    year in which such payments can be made without exceeding
11    the amount specified in this paragraph (2). The
12    calculations required by this paragraph (2) shall be made
13    only once for each procurement plan year. Once the
14    determination as to the amount of zero emission credits to
15    be paid is made based on the calculations set forth in this
16    paragraph (2), no subsequent rate impact determinations
17    shall be made and no adjustments to those contract amounts
18    shall be allowed. All costs incurred under those contracts
19    and in implementing this subsection (d-5) shall be
20    recovered by the electric utility as provided in this
21    Section.
22        No later than June 30, 2019, the Commission shall
23    review the limitation on the amount of zero emission
24    credits procured under this subsection (d-5) and report to
25    the General Assembly its findings as to whether that
26    limitation unduly constrains the procurement of

 

 

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1    cost-effective zero emission credits.
2        (3) Six years after the execution of a contract under
3    this subsection (d-5), the Agency shall determine whether
4    the actual zero emission credit payments received by the
5    supplier over the 6-year period exceed the Average ZEC
6    Payment. In addition, at the end of the term of a contract
7    executed under this subsection (d-5), or at the time, if
8    any, a zero emission facility's contract is terminated
9    under subparagraph (E) of paragraph (1) of this subsection
10    (d-5), then the Agency shall determine whether the actual
11    zero emission credit payments received by the supplier
12    over the term of the contract exceed the Average ZEC
13    Payment, after taking into account any amounts previously
14    credited back to the utility under this paragraph (3). If
15    the Agency determines that the actual zero emission credit
16    payments received by the supplier over the relevant period
17    exceed the Average ZEC Payment, then the supplier shall
18    credit the difference back to the utility. The amount of
19    the credit shall be remitted to the applicable electric
20    utility no later than 120 days after the Agency's
21    determination, which the utility shall reflect as a credit
22    on its retail customer bills as soon as practicable;
23    however, the credit remitted to the utility shall not
24    exceed the total amount of payments received by the
25    facility under its contract.
26        For purposes of this Section, the Average ZEC Payment

 

 

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1    shall be calculated by multiplying the quantity of zero
2    emission credits delivered under the contract times the
3    average contract price. The average contract price shall
4    be determined by subtracting the amount calculated under
5    subparagraph (B) of this paragraph (3) from the amount
6    calculated under subparagraph (A) of this paragraph (3),
7    as follows:
8            (A) The average of the Social Cost of Carbon, as
9        defined in subparagraph (B) of paragraph (1) of this
10        subsection (d-5), during the term of the contract.
11            (B) The average of the market price indices, as
12        defined in subparagraph (B) of paragraph (1) of this
13        subsection (d-5), during the term of the contract,
14        minus the baseline market price index, as defined in
15        subparagraph (B) of paragraph (1) of this subsection
16        (d-5).
17        If the subtraction yields a negative number, then the
18    Average ZEC Payment shall be zero.
19        (4) Cost-effective zero emission credits procured from
20    zero emission facilities shall satisfy the applicable
21    definitions set forth in Section 1-10 of this Act.
22        (5) The electric utility shall retire all zero
23    emission credits used to comply with the requirements of
24    this subsection (d-5).
25        (6) Electric utilities shall be entitled to recover
26    all of the costs associated with the procurement of zero

 

 

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1    emission credits through an automatic adjustment clause
2    tariff in accordance with subsection (k) and (m) of
3    Section 16-108 of the Public Utilities Act, and the
4    contracts executed under this subsection (d-5) shall
5    provide that the utilities' payment obligations under such
6    contracts shall be reduced if an adjustment is required
7    under subsection (m) of Section 16-108 of the Public
8    Utilities Act.
9        (7) This subsection (d-5) shall become inoperative on
10    January 1, 2028.
11    (d-10) Nuclear Plant Assistance; carbon mitigation
12credits.
13    (1) The General Assembly finds:
14        (A) The health, welfare, and prosperity of all
15    Illinois citizens require that the State of Illinois act
16    to avoid and not increase carbon emissions from electric
17    generation sources while continuing to ensure affordable,
18    stable, and reliable electricity to all citizens.
19        (B) Absent immediate action by the State to preserve
20    existing carbon-free energy resources, those resources may
21    retire, and the electric generation needs of Illinois'
22    retail customers may be met instead by facilities that
23    emit significant amounts of carbon pollution and other
24    harmful air pollutants at a high social and economic cost
25    until Illinois is able to develop other forms of clean
26    energy.

 

 

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1        (C) The General Assembly finds that nuclear power
2    generation is necessary for the State's transition to 100%
3    clean energy, and ensuring continued operation of nuclear
4    plants advances environmental and public health interests
5    through providing carbon-free electricity while reducing
6    the air pollution profile of the Illinois energy
7    generation fleet.
8        (D) The clean energy attributes of nuclear generation
9    facilities support the State in its efforts to achieve
10    100% clean energy.
11        (E) The State currently invests in various forms of
12    clean energy, including, but not limited to, renewable
13    energy, energy efficiency, and low-emission vehicles,
14    among others.
15        (F) The Environmental Protection Agency commissioned
16    an independent audit which provided a detailed assessment
17    of the financial condition of the Illinois nuclear fleet
18    to evaluate its financial viability and whether the
19    environmental benefits of such resources were at risk. The
20    report identified the risk of losing the environmental
21    benefits of several specific nuclear units. The report
22    also identified that the LaSalle County Generating Station
23    will continue to operate through 2026 and therefore is not
24    eligible to participate in the carbon mitigation credit
25    program.
26        (G) Nuclear plants provide carbon-free energy, which

 

 

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1    helps to avoid many health-related negative impacts for
2    Illinois residents.
3        (H) The procurement of carbon mitigation credits
4    representing the environmental benefits of carbon-free
5    generation will further the State's efforts at achieving
6    100% clean energy and decarbonizing the electricity sector
7    in a safe, reliable, and affordable manner. Further, the
8    procurement of carbon emission credits will enhance the
9    health and welfare of Illinois residents through decreased
10    reliance on more highly polluting generation.
11        (I) The General Assembly therefore finds it necessary
12    to establish carbon mitigation credits to ensure decreased
13    reliance on more carbon-intensive energy resources, for
14    transitioning to a fully decarbonized electricity sector,
15    and to help ensure health and welfare of the State's
16    residents.
17    (2) As used in this subsection:
18    "Baseline costs" means costs used to establish a customer
19protection cap that have been evaluated through an independent
20audit of a carbon-free energy resource conducted by the
21Environmental Protection Agency that evaluated projected
22annual costs for operation and maintenance expenses; fully
23allocated overhead costs, which shall be allocated using the
24methodology developed by the Institute for Nuclear Power
25Operations; fuel expenditures; nonfuel capital expenditures;
26spent fuel expenditures; a return on working capital; the cost

 

 

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1of operational and market risks that could be avoided by
2ceasing operation; and any other costs necessary for continued
3operations, provided that "necessary" means, for purposes of
4this definition, that the costs could reasonably be avoided
5only by ceasing operations of the carbon-free energy resource.
6    "Carbon mitigation credit" means a tradable credit that
7represents the carbon emission reduction attributes of one
8megawatt-hour of energy produced from a carbon-free energy
9resource.
10    "Carbon-free energy resource" means a generation facility
11that: (1) is fueled by nuclear power; and (2) is
12interconnected to PJM Interconnection, LLC.
13    (3) Procurement.
14        (A) Beginning with the delivery year commencing on
15    June 1, 2022, the Agency shall, for electric utilities
16    serving at least 3,000,000 retail customers in the State,
17    seek to procure contracts for no more than approximately
18    54,500,000 cost-effective carbon mitigation credits from
19    carbon-free energy resources because such credits are
20    necessary to support current levels of carbon-free energy
21    generation and ensure the State meets its carbon dioxide
22    emissions reduction goals. The Agency shall not make a
23    partial award of a contract for carbon mitigation credits
24    covering a fractional amount of a carbon-free energy
25    resource's projected output.
26        (B) Each carbon-free energy resource that intends to

 

 

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1    participate in a procurement shall be required to submit
2    to the Agency the following information for the resource
3    on or before the date established by the Agency:
4            (i) the in-service date and remaining useful life
5        of the carbon-free energy resource;
6            (ii) the amount of power generated annually for
7        each of the past 10 years, which shall be used to
8        determine the capability of each facility;
9            (iii) a commitment to be reflected in any contract
10        entered into pursuant to this subsection (d-10) to
11        continue operating the carbon-free energy resource at
12        a capacity factor of at least 88% annually on average
13        for the duration of the contract or contracts executed
14        under the procurement held under this subsection
15        (d-10), except in an instance described in
16        subparagraph (E) of paragraph (1) of subsection (d-5)
17        of this Section or made impracticable as a result of
18        compliance with law or regulation;
19            (iv) financial need and the risk of loss of the
20        environmental benefits of such resource, which shall
21        include the following information:
22                (I) the carbon-free energy resource's cost
23            projections, expressed on a per megawatt-hour
24            basis, over the next 5 delivery years, which shall
25            include the following: operation and maintenance
26            expenses; fully allocated overhead costs, which

 

 

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1            shall be allocated using the methodology developed
2            by the Institute for Nuclear Power Operations;
3            fuel expenditures; nonfuel capital expenditures;
4            spent fuel expenditures; a return on working
5            capital; the cost of operational and market risks
6            that could be avoided by ceasing operation; and
7            any other costs necessary for continued
8            operations, provided that "necessary" means, for
9            purposes of this subitem (I), that the costs could
10            reasonably be avoided only by ceasing operations
11            of the carbon-free energy resource; and
12                (II) the carbon-free energy resource's revenue
13            projections, including energy, capacity, ancillary
14            services, any other direct State support, known or
15            anticipated federal attribute credits, known or
16            anticipated tax credits, and any other direct
17            federal support.
18        The information described in this subparagraph (B) may
19    be submitted on a confidential basis and shall be treated
20    and maintained by the Agency, the procurement
21    administrator, and the Commission as confidential and
22    proprietary and exempt from disclosure under subparagraphs
23    (a) and (g) of paragraph (1) of Section 7 of the Freedom of
24    Information Act. The Office of the Attorney General shall
25    have access to, and maintain the confidentiality of, such
26    information pursuant to Section 6.5 of the Attorney

 

 

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1    General Act.
2        (C) The Agency shall solicit bids for the contracts
3    described in this subsection (d-10) from carbon-free
4    energy resources that have satisfied the requirements of
5    subparagraph (B) of this paragraph (3). The contracts
6    procured pursuant to a procurement event shall reflect,
7    and be subject to, the following terms, requirements, and
8    limitations:
9            (i) Contracts are for delivery of carbon
10        mitigation credits, and are not energy or capacity
11        sales contracts requiring physical delivery. Pursuant
12        to item (iii), contract payments shall fully deduct
13        the value of any monetized federal production tax
14        credits, credits issued pursuant to a federal clean
15        energy standard, and other federal credits if
16        applicable.
17            (ii) Contracts for carbon mitigation credits shall
18        commence with the delivery year beginning on June 1,
19        2022 and shall be for a term of 5 delivery years
20        concluding on May 31, 2027.
21            (iii) The price per carbon mitigation credit to be
22        paid under a contract for a given delivery year shall
23        be equal to an accepted bid price less the sum of:
24                (I) one of the following energy price indices,
25            selected by the bidder at the time of the bid for
26            the term of the contract:

 

 

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1                    (aa) the weighted-average hourly day-ahead
2                price for the applicable delivery year at the
3                busbar of all resources procured pursuant to
4                this subsection (d-10), weighted by actual
5                production from the resources; or
6                    (bb) the projected energy price for the
7                PJM Interconnection, LLC Northern Illinois Hub
8                for the applicable delivery year determined
9                according to subitem (aa) of item (iii) of
10                subparagraph (B) of paragraph (1) of
11                subsection (d-5).
12                (II) the Base Residual Auction Capacity Price
13            for the ComEd zone as determined by PJM
14            Interconnection, LLC, divided by 24 hours per day,
15            for the applicable delivery year for the first 3
16            delivery years, and then any subsequent delivery
17            years unless the PJM Interconnection, LLC applies
18            the Minimum Offer Price Rule to participating
19            carbon-free energy resources because they supply
20            carbon mitigation credits pursuant to this Section
21            at which time, upon notice by the carbon-free
22            energy resource to the Commission and subject to
23            the Commission's confirmation, the value under
24            this subitem shall be zero, as further described
25            in the carbon mitigation credit procurement plan;
26            and

 

 

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1                (III) any value of monetized federal tax
2            credits, direct payments, or similar subsidy
3            provided to the carbon-free energy resource from
4            any unit of government that is not already
5            reflected in energy prices.
6            If the price-per-megawatt-hour calculation
7        performed under item (iii) of this subparagraph (C)
8        for a given delivery year results in a net positive
9        value, then the electric utility counterparty to the
10        contract shall multiply such net value by the
11        applicable contract quantity and remit the amount to
12        the supplier.
13            To protect retail customers from retail rate
14        impacts that may arise upon the initiation of carbon
15        policy changes, if the price-per-megawatt-hour
16        calculation performed under item (iii) of this
17        subparagraph (C) for a given delivery year results in
18        a net negative value, then the supplier counterparty
19        to the contract shall multiply such net value by the
20        applicable contract quantity and remit such amount to
21        the electric utility counterparty. The electric
22        utility shall reflect such amounts remitted by
23        suppliers as a credit on its retail customer bills as
24        soon as practicable.
25            (iv) To ensure that retail customers in Northern
26        Illinois do not pay more for carbon mitigation credits

 

 

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1        than the value such credits provide, and
2        notwithstanding the provisions of this subsection
3        (d-10), the Agency shall not accept bids for contracts
4        that exceed a customer protection cap equal to the
5        baseline costs of carbon-free energy resources.
6            The baseline costs for the applicable year shall
7        be the following:
8                (I) For the delivery year beginning June 1,
9            2022, the baseline costs shall be an amount equal
10            to $30.30 per megawatt-hour.
11                (II) For the delivery year beginning June 1,
12            2023, the baseline costs shall be an amount equal
13            to $32.50 per megawatt-hour.
14                (III) For the delivery year beginning June 1,
15            2024, the baseline costs shall be an amount equal
16            to $33.43 per megawatt-hour.
17                (IV) For the delivery year beginning June 1,
18            2025, the baseline costs shall be an amount equal
19            to $33.50 per megawatt-hour.
20                (V) For the delivery year beginning June 1,
21            2026, the baseline costs shall be an amount equal
22            to $34.50 per megawatt-hour.
23            An Environmental Protection Agency consultant
24        forecast, included in a report issued April 14, 2021,
25        projects that a carbon-free energy resource has the
26        opportunity to earn on average approximately $30.28

 

 

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1        per megawatt-hour, for the sale of energy and capacity
2        during the time period between 2022 and 2027.
3        Therefore, the sale of carbon mitigation credits
4        provides the opportunity to receive an additional
5        amount per megawatt-hour in addition to the projected
6        prices for energy and capacity.
7            Although actual energy and capacity prices may
8        vary from year-to-year, the General Assembly finds
9        that this customer protection cap will help ensure
10        that the cost of carbon mitigation credits will be
11        less than its value, based upon the social cost of
12        carbon identified in the Technical Support Document
13        issued in February 2021 by the U.S. Interagency
14        Working Group on Social Cost of Greenhouse Gases and
15        the PJM Interconnection, LLC carbon dioxide marginal
16        emission rate for 2020, and that a carbon-free energy
17        resource receiving payment for carbon mitigation
18        credits receives no more than necessary to keep those
19        units in operation.
20        (D) No later than 7 days after the effective date of
21    this amendatory Act of the 102nd General Assembly, the
22    Agency shall publish its proposed carbon mitigation credit
23    procurement plan. The Plan shall provide that winning bids
24    shall be selected by taking into consideration which
25    resources best match public interest criteria that
26    include, but are not limited to, minimizing carbon dioxide

 

 

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1    emissions that result from electricity consumed in
2    Illinois and minimizing sulfur dioxide, nitrogen oxide,
3    and particulate matter emissions that adversely affect the
4    citizens of this State. The selection of winning bids
5    shall also take into account the incremental environmental
6    benefits resulting from the procurement or procurements,
7    such as any existing environmental benefits that are
8    preserved by a procurement held under this subsection
9    (d-10) and would cease to exist if the procurement were
10    not held, including the preservation of carbon-free energy
11    resources. For those bidders having the same public
12    interest criteria score, the relative ranking of such
13    bidders shall be determined by price. The Plan shall
14    describe in detail how each public interest factor shall
15    be considered and weighted in the bid selection process to
16    ensure that the public interest criteria are applied to
17    the procurement. The Plan shall, to the extent practical
18    and permissible by federal law, ensure that successful
19    bidders make commercially reasonable efforts to apply for
20    federal tax credits, direct payments, or similar subsidy
21    programs that support carbon-free generation and for which
22    the successful bidder is eligible. Upon publishing of the
23    carbon mitigation credit procurement plan, copies of the
24    plan shall be posted and made publicly available on the
25    Agency's website. All interested parties shall have 7 days
26    following the date of posting to provide comment to the

 

 

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1    Agency on the plan. All comments shall be posted to the
2    Agency's website. Following the end of the comment period,
3    but no more than 19 days later than the effective date of
4    this amendatory Act of the 102nd General Assembly, the
5    Agency shall revise the plan as necessary based on the
6    comments received and file its carbon mitigation credit
7    procurement plan with the Commission.
8        (E) If the Commission determines that the plan is
9    likely to result in the procurement of cost-effective
10    carbon mitigation credits, then the Commission shall,
11    after notice and hearing and opportunity for comment, but
12    no later than 42 days after the Agency filed the plan,
13    approve the plan or approve it with modification. For
14    purposes of this subsection (d-10), "cost-effective" means
15    carbon mitigation credits that are procured from
16    carbon-free energy resources at prices that are within the
17    limits specified in this paragraph (3). As part of the
18    Commission's review and acceptance or rejection of the
19    procurement results, the Commission shall, in its public
20    notice of successful bidders:
21            (i) identify how the selected carbon-free energy
22        resources satisfy the public interest criteria
23        described in this paragraph (3) of minimizing carbon
24        dioxide emissions that result from electricity
25        consumed in Illinois and minimizing sulfur dioxide,
26        nitrogen oxide, and particulate matter emissions that

 

 

HB2857- 210 -LRB103 25518 AMQ 51867 b

1        adversely affect the citizens of this State;
2            (ii) specifically address how the selection of
3        carbon-free energy resources takes into account the
4        incremental environmental benefits resulting from the
5        procurement, including any existing environmental
6        benefits that are preserved by the procurements held
7        under this amendatory Act of the 102nd General
8        Assembly and would have ceased to exist if the
9        procurements had not been held, such as the
10        preservation of carbon-free energy resources;
11            (iii) quantify the environmental benefit of
12        preserving the carbon-free energy resources procured
13        pursuant to this subsection (d-10), including the
14        following:
15                (I) an assessment value of avoided greenhouse
16            gas emissions measured as the product of the
17            carbon-free energy resources' output over the
18            contract term, using generally accepted
19            methodologies for the valuation of avoided
20            emissions; and
21                (II) an assessment of costs of replacement
22            with other carbon-free energy resources and
23            renewable energy resources, including wind and
24            photovoltaic generation, based upon an assessment
25            of the prices paid for renewable energy credits
26            through programs and procurements conducted

 

 

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1            pursuant to subsection (c) of Section 1-75 of this
2            Act, and the additional storage necessary to
3            produce the same or similar capability of matching
4            customer usage patterns.
5        (F) The procurements described in this paragraph (3),
6    including, but not limited to, the execution of all
7    contracts procured, shall be completed no later than
8    December 3, 2021. The procurement and plan approval
9    processes required by this paragraph (3) shall be
10    conducted in conjunction with the procurement and plan
11    approval processes required by Section 16-111.5 of the
12    Public Utilities Act, to the extent practicable. However,
13    the Agency and Commission may, as appropriate, modify the
14    various dates and timelines under this subparagraph and
15    subparagraphs (D) and (E) of this paragraph (3) to meet
16    the December 3, 2021 contract execution deadline.
17    Following the completion of such procurements, and
18    consistent with this paragraph (3), the Agency shall
19    calculate the payments to be made under each contract in a
20    timely fashion.
21        (F-1) Costs incurred by the electric utility pursuant
22    to a contract authorized by this subsection (d-10) shall
23    be deemed prudently incurred and reasonable in amount, and
24    the electric utility shall be entitled to full cost
25    recovery pursuant to a tariff or tariffs filed with the
26    Commission.

 

 

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1        (G) The counterparty electric utility shall retire all
2    carbon mitigation credits used to comply with the
3    requirements of this subsection (d-10).
4        (H) If a carbon-free energy resource is sold to
5    another owner, the rights, obligations, and commitments
6    under this subsection (d-10) shall continue to the
7    subsequent owner.
8        (I) This subsection (d-10) shall become inoperative on
9    January 1, 2028.
10    (e) The draft procurement plans are subject to public
11comment, as required by Section 16-111.5 of the Public
12Utilities Act.
13    (f) The Agency shall submit the final procurement plan to
14the Commission. The Agency shall revise a procurement plan if
15the Commission determines that it does not meet the standards
16set forth in Section 16-111.5 of the Public Utilities Act.
17    (g) The Agency shall assess fees to each affected utility
18to recover the costs incurred in preparation of the annual
19procurement plan for the utility.
20    (h) The Agency shall assess fees to each bidder to recover
21the costs incurred in connection with a competitive
22procurement process.
23    (i) A renewable energy credit, carbon emission credit,
24zero emission credit, or carbon mitigation credit can only be
25used once to comply with a single portfolio or other standard
26as set forth in subsection (c), subsection (d), or subsection

 

 

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1(d-5) of this Section, respectively. A renewable energy
2credit, carbon emission credit, zero emission credit, or
3carbon mitigation credit cannot be used to satisfy the
4requirements of more than one standard. If more than one type
5of credit is issued for the same megawatt hour of energy, only
6one credit can be used to satisfy the requirements of a single
7standard. After such use, the credit must be retired together
8with any other credits issued for the same megawatt hour of
9energy.
10(Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
11102-662, eff. 9-15-21.)
 
12    Section 15. The Community Energy, Climate, and Jobs
13Planning Act is amended by changing Section 15-10 as follows:
 
14    (50 ILCS 65/15-10)
15    (Section scheduled to be repealed on September 15, 2045)
16    Sec. 15-10. Definitions. As used in this Act:
17    "Alternative energy improvement" means the installation or
18upgrade of electrical wiring, outlets, or charging stations to
19charge a motor vehicle that is fully or partially powered by
20electricity; photovoltaic, energy storage, or thermal
21resource; or any combination thereof.
22    "Disadvantaged worker" means an individual who is defined
23as: (1) being homeless; (2) being a custodial single parent;
24(3) being a recipient of public assistance; (4) lacking a high

 

 

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1school diploma or high school equivalency; (5) having a
2criminal record or other involvement in the criminal justice
3system; (6) suffering from chronic unemployment; (7) being
4previously in the child welfare system; or (8) being a
5veteran.
6    "Energy efficiency improvement" means equipment, devices,
7or materials intended to decrease energy consumption or
8promote a more efficient use of electricity, natural gas,
9propane, or other forms of energy on property, including, but
10not limited to:
11        (1) insulation in walls, roofs, floors, foundations,
12    or heating and cooling distribution systems;
13        (2) storm windows and doors, multi-glazed windows and
14    doors, heat-absorbing or heat-reflective glazed and coated
15    window and door systems, and additional glazing,
16    reductions in glass area, and other window and door system
17    modifications that reduce energy consumption;
18        (3) automated energy control systems;
19        (4) high efficiency heating, ventilating, or
20    air-conditioning and distribution system modifications or
21    replacements;
22        (5) caulking, weather-stripping, and air sealing;
23        (6) replacement or modification of lighting fixtures
24    to reduce the energy use of the lighting system;
25        (7) energy controls or recovery systems;
26        (8) day lighting systems;

 

 

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1        (9) any energy efficiency project, as defined in
2    Section 825-65 of the Illinois Finance Authority Act; and
3        (10) any other installation or modification of
4    equipment, devices, or materials approved as a utility
5    cost-saving measure by the governing body.
6    "Energy project" means the installation or modification of
7an alternative energy improvement, energy efficiency
8improvement, or water use improvement, or the acquisition,
9installation, or improvement of a renewable energy system that
10is affixed to a stabilized existing property, including new
11construction.
12    "Environmental justice communities" means the proposed
13definition of that term based on existing methodologies and
14findings used by the Illinois Power Agency and its
15Administrator in its Illinois Solar for All Program.
16    "Equity investment eligible community" or "eligible
17community" are synonymous and mean the geographic areas
18throughout Illinois which would most benefit from equitable
19investments by the State designed to combat discrimination and
20foster sustainable economic growth. Specifically, eligible
21communities shall be defined as the following areas:
22        (1) R3 Areas as established pursuant to Section 10-40
23    of the Cannabis Regulation and Tax Act, where residents
24    have historically been excluded from economic
25    opportunities, including opportunities in the energy
26    sector; and

 

 

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1        (2) Environmental justice communities, as defined by
2    the Illinois Power Agency pursuant to the Illinois Power
3    Agency Act, where residents have historically been subject
4    to disproportionate burdens of pollution, including
5    pollution from the energy sector.
6    "Equity investment eligible person" or "eligible person"
7are synonymous and mean the persons who would most benefit
8from equitable investments by the State designed to combat
9discrimination and foster sustainable economic growth.
10Specifically, "eligible person" means the following people:
11        (1) a person whose primary residence is in an equity
12    investment eligible community;
13        (2) a person who is a graduate of or currently
14    enrolled in the foster care system; or
15        (3) a person who was formerly incarcerated.
16    "Governing body" means the county board or board of county
17commissioners of a county, the city council of a municipality,
18or the board of trustees of a village.
19    "Local Employment Plan" means a bidding option that public
20agencies may include in requests for proposals to incentivize
21bidders to voluntarily plan to retain and create high-skilled
22local manufacturing jobs; invest in preapprenticeship,
23apprenticeship, and training opportunities; and develop
24family-sustaining career pathways into clean energy industries
25for disadvantaged workers in a specified local area. The Local
26Employment Plan only applies to work that is not financed with

 

 

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1federal money.
2    "Local unit of government" means a county, municipality,
3or village.
4    "Natural climate solutions" means conservation,
5restoration, or improved land management actions that increase
6carbon storage or avoid greenhouse gas emissions on natural
7and working lands.
8    "Nature-based approaches for climate adaptation" means
9actions that preserve, enhance, or expand functions provided
10by nature that increase capacity to manage adverse conditions
11created or exacerbated by climate change. "Nature-based
12approaches for climate adaptation" includes, but is not
13limited to, the restoration of native ecosystems, especially
14floodplains; installation of bioswales, rain gardens, and
15other green stormwater infrastructure; and practices that
16increase soil health and reduce urban heat island effects.
17    "Public agency" means the State of Illinois or any of its
18government bodies and subdivisions, including the various
19counties, townships, municipalities, school districts,
20educational service regions, special road districts, public
21water supply districts, drainage districts, levee districts,
22sewer districts, housing authorities, and transit agencies.
23    "Renewable energy resources" has the meaning set forth in
24Section 1-10 of the Illinois Power Agency Act resource"
25includes energy and its associated renewable energy credit or
26renewable energy credits from wind energy, solar thermal

 

 

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1energy, geothermal energy, photovoltaic cells and panels,
2biodiesel, anaerobic digestion, and hydropower that does not
3involve new construction or significant expansion of
4hydropower dams. For purposes of this Act, landfill gas
5produced in the State is considered a renewable energy
6resource. "Renewable energy resource" does not include the
7incineration or burning of any solid material.
8    "Renewable energy system" means a fixture, product,
9device, or interacting group of fixtures, products, or devices
10on the customer's side of the meter that use one or more
11renewable energy resources to generate electricity, and
12specifically includes any renewable energy project, as defined
13in Section 825-65 of the Illinois Finance Authority Act.
14    "U.S. Employment Plan" means a bidding option that public
15agencies may include in requests for proposals to incentivize
16bidders to voluntarily plan to retain and create high-skilled
17U.S. manufacturing jobs; invest in preapprenticeship,
18apprenticeship, and training opportunities; and develop
19family-sustaining career pathways into clean energy industries
20for disadvantaged workers throughout the U.S. The U.S.
21Employment Plan only applies to work financed with federal
22Money.
23    "Water use improvement" means any fixture, product,
24system, device, or interacting group thereof for or serving
25any property that has the effect of conserving water resources
26through improved water management, efficiency, or thermal

 

 

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1resource.
2(Source: P.A. 102-662, eff. 9-15-21.)
 
3    Section 20. The Public Utilities Act is amended by
4changing Section 16-107.5 as follows:
 
5    (220 ILCS 5/16-107.5)
6    Sec. 16-107.5. Net electricity metering.
7    (a) The General Assembly finds and declares that a program
8to provide net electricity metering, as defined in this
9Section, for eligible customers can encourage private
10investment in renewable energy resources, stimulate economic
11growth, enhance the continued diversification of Illinois'
12energy resource mix, and protect the Illinois environment.
13Further, to achieve the goals of this Act that robust options
14for customer-site distributed generation continue to thrive in
15Illinois, the General Assembly finds that a predictable
16transition must be ensured for customers between full net
17metering at the retail electricity rate to the distribution
18generation rebate described in Section 16-107.6.
19    (b) As used in this Section, (i) "community renewable
20generation project" shall have the meaning set forth in
21Section 1-10 of the Illinois Power Agency Act; (ii) "eligible
22customer" means a retail customer that owns, hosts, or
23operates, including any third-party owned systems, a solar,
24wind, or other eligible renewable electrical generating

 

 

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1facility that is located on the customer's premises or
2customer's side of the billing meter and is intended primarily
3to offset the customer's own current or future electrical
4requirements; (iii) "electricity provider" means an electric
5utility or alternative retail electric supplier; (iv)
6"eligible renewable electrical generating facility" means a
7generator, which may include the co-location of an energy
8storage system, that is interconnected under rules adopted by
9the Commission and is powered by a renewable energy resource
10as defined in Section 1-10 of the Illinois Power Agency Act
11solar electric energy, wind, dedicated crops grown for
12electricity generation, agricultural residues, untreated and
13unadulterated wood waste, livestock manure, anaerobic
14digestion of livestock or food processing waste, fuel cells or
15microturbines powered by renewable fuels, or hydroelectric
16energy; (v) "net electricity metering" (or "net metering")
17means the measurement, during the billing period applicable to
18an eligible customer, of the net amount of electricity
19supplied by an electricity provider to the customer or
20provided to the electricity provider by the customer or
21subscriber; (vi) "subscriber" shall have the meaning as set
22forth in Section 1-10 of the Illinois Power Agency Act; (vii)
23"subscription" shall have the meaning set forth in Section
241-10 of the Illinois Power Agency Act; (viii) "energy storage
25system" means commercially available technology that is
26capable of absorbing energy and storing it for a period of time

 

 

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1for use at a later time, including, but not limited to,
2electrochemical, thermal, and electromechanical technologies,
3and may be interconnected behind the customer's meter or
4interconnected behind its own meter; and (ix) "future
5electrical requirements" means modeled electrical requirements
6upon occupation of a new or vacant property, and other
7reasonable expectations of future electrical use, as well as,
8for occupied properties, a reasonable approximation of the
9annual load of 2 electric vehicles and, for non-electric
10heating customers, a reasonable approximation of the
11incremental electric load associated with fuel switching. The
12approximations shall be applied to the appropriate net
13metering tariff and do not need to be unique to each individual
14eligible customer. The utility shall submit these
15approximations to the Commission for review, modification, and
16approval.
17    (c) A net metering facility shall be equipped with
18metering equipment that can measure the flow of electricity in
19both directions at the same rate.
20        (1) For eligible customers whose electric service has
21    not been declared competitive pursuant to Section 16-113
22    of this Act as of July 1, 2011 and whose electric delivery
23    service is provided and measured on a kilowatt-hour basis
24    and electric supply service is not provided based on
25    hourly pricing, this shall typically be accomplished
26    through use of a single, bi-directional meter. If the

 

 

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1    eligible customer's existing electric revenue meter does
2    not meet this requirement, the electricity provider shall
3    arrange for the local electric utility or a meter service
4    provider to install and maintain a new revenue meter at
5    the electricity provider's expense, which may be the smart
6    meter described by subsection (b) of Section 16-108.5 of
7    this Act.
8        (2) For eligible customers whose electric service has
9    not been declared competitive pursuant to Section 16-113
10    of this Act as of July 1, 2011 and whose electric delivery
11    service is provided and measured on a kilowatt demand
12    basis and electric supply service is not provided based on
13    hourly pricing, this shall typically be accomplished
14    through use of a dual channel meter capable of measuring
15    the flow of electricity both into and out of the
16    customer's facility at the same rate and ratio. If such
17    customer's existing electric revenue meter does not meet
18    this requirement, then the electricity provider shall
19    arrange for the local electric utility or a meter service
20    provider to install and maintain a new revenue meter at
21    the electricity provider's expense, which may be the smart
22    meter described by subsection (b) of Section 16-108.5 of
23    this Act.
24        (3) For all other eligible customers, until such time
25    as the local electric utility installs a smart meter, as
26    described by subsection (b) of Section 16-108.5 of this

 

 

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1    Act, the electricity provider may arrange for the local
2    electric utility or a meter service provider to install
3    and maintain metering equipment capable of measuring the
4    flow of electricity both into and out of the customer's
5    facility at the same rate and ratio, typically through the
6    use of a dual channel meter. If the eligible customer's
7    existing electric revenue meter does not meet this
8    requirement, then the costs of installing such equipment
9    shall be paid for by the customer.
10    (d) An electricity provider shall measure and charge or
11credit for the net electricity supplied to eligible customers
12or provided by eligible customers whose electric service has
13not been declared competitive pursuant to Section 16-113 of
14this Act as of July 1, 2011 and whose electric delivery service
15is provided and measured on a kilowatt-hour basis and electric
16supply service is not provided based on hourly pricing in the
17following manner:
18        (1) If the amount of electricity used by the customer
19    during the billing period exceeds the amount of
20    electricity produced by the customer, the electricity
21    provider shall charge the customer for the net electricity
22    supplied to and used by the customer as provided in
23    subsection (e-5) of this Section.
24        (2) If the amount of electricity produced by a
25    customer during the billing period exceeds the amount of
26    electricity used by the customer during that billing

 

 

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1    period, the electricity provider supplying that customer
2    shall apply a 1:1 kilowatt-hour credit to a subsequent
3    bill for service to the customer for the net electricity
4    supplied to the electricity provider. The electricity
5    provider shall continue to carry over any excess
6    kilowatt-hour credits earned and apply those credits to
7    subsequent billing periods to offset any
8    customer-generator consumption in those billing periods
9    until all credits are used or until the end of the
10    annualized period.
11        (3) At the end of the year or annualized over the
12    period that service is supplied by means of net metering,
13    or in the event that the retail customer terminates
14    service with the electricity provider prior to the end of
15    the year or the annualized period, any remaining credits
16    in the customer's account shall expire.
17    (d-5) An electricity provider shall measure and charge or
18credit for the net electricity supplied to eligible customers
19or provided by eligible customers whose electric service has
20not been declared competitive pursuant to Section 16-113 of
21this Act as of July 1, 2011 and whose electric delivery service
22is provided and measured on a kilowatt-hour basis and electric
23supply service is provided based on hourly pricing or
24time-of-use rates in the following manner:
25        (1) If the amount of electricity used by the customer
26    during any hourly period or time-of-use period exceeds the

 

 

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1    amount of electricity produced by the customer, the
2    electricity provider shall charge the customer for the net
3    electricity supplied to and used by the customer according
4    to the terms of the contract or tariff to which the same
5    customer would be assigned to or be eligible for if the
6    customer was not a net metering customer.
7        (2) If the amount of electricity produced by a
8    customer during any hourly period or time-of-use period
9    exceeds the amount of electricity used by the customer
10    during that hourly period or time-of-use period, the
11    energy provider shall apply a credit for the net
12    kilowatt-hours produced in such period. The credit shall
13    consist of an energy credit and a delivery service credit.
14    The energy credit shall be valued at the same price per
15    kilowatt-hour as the electric service provider would
16    charge for kilowatt-hour energy sales during that same
17    hourly period or time-of-use period. The delivery credit
18    shall be equal to the net kilowatt-hours produced in such
19    hourly period or time-of-use period times a credit that
20    reflects all kilowatt-hour based charges in the customer's
21    electric service rate, excluding energy charges.
22    (e) An electricity provider shall measure and charge or
23credit for the net electricity supplied to eligible customers
24whose electric service has not been declared competitive
25pursuant to Section 16-113 of this Act as of July 1, 2011 and
26whose electric delivery service is provided and measured on a

 

 

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1kilowatt demand basis and electric supply service is not
2provided based on hourly pricing in the following manner:
3        (1) If the amount of electricity used by the customer
4    during the billing period exceeds the amount of
5    electricity produced by the customer, then the electricity
6    provider shall charge the customer for the net electricity
7    supplied to and used by the customer as provided in
8    subsection (e-5) of this Section. The customer shall
9    remain responsible for all taxes, fees, and utility
10    delivery charges that would otherwise be applicable to the
11    net amount of electricity used by the customer.
12        (2) If the amount of electricity produced by a
13    customer during the billing period exceeds the amount of
14    electricity used by the customer during that billing
15    period, then the electricity provider supplying that
16    customer shall apply a 1:1 kilowatt-hour credit that
17    reflects the kilowatt-hour based charges in the customer's
18    electric service rate to a subsequent bill for service to
19    the customer for the net electricity supplied to the
20    electricity provider. The electricity provider shall
21    continue to carry over any excess kilowatt-hour credits
22    earned and apply those credits to subsequent billing
23    periods to offset any customer-generator consumption in
24    those billing periods until all credits are used or until
25    the end of the annualized period.
26        (3) At the end of the year or annualized over the

 

 

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1    period that service is supplied by means of net metering,
2    or in the event that the retail customer terminates
3    service with the electricity provider prior to the end of
4    the year or the annualized period, any remaining credits
5    in the customer's account shall expire.
6    (e-5) An electricity provider shall provide electric
7service to eligible customers who utilize net metering at
8non-discriminatory rates that are identical, with respect to
9rate structure, retail rate components, and any monthly
10charges, to the rates that the customer would be charged if not
11a net metering customer. An electricity provider shall not
12charge net metering customers any fee or charge or require
13additional equipment, insurance, or any other requirements not
14specifically authorized by interconnection standards
15authorized by the Commission, unless the fee, charge, or other
16requirement would apply to other similarly situated customers
17who are not net metering customers. The customer will remain
18responsible for all taxes, fees, and utility delivery charges
19that would otherwise be applicable to the net amount of
20electricity used by the customer. Subsections (c) through (e)
21of this Section shall not be construed to prevent an
22arms-length agreement between an electricity provider and an
23eligible customer that sets forth different prices, terms, and
24conditions for the provision of net metering service,
25including, but not limited to, the provision of the
26appropriate metering equipment for non-residential customers.

 

 

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1    (f) Notwithstanding the requirements of subsections (c)
2through (e-5) of this Section, an electricity provider must
3require dual-channel metering for customers operating eligible
4renewable electrical generating facilities to whom the
5provisions of neither subsection (d), (d-5), nor (e) of this
6Section apply. In such cases, electricity charges and credits
7shall be determined as follows:
8        (1) The electricity provider shall assess and the
9    customer remains responsible for all taxes, fees, and
10    utility delivery charges that would otherwise be
11    applicable to the gross amount of kilowatt-hours supplied
12    to the eligible customer by the electricity provider.
13        (2) Each month that service is supplied by means of
14    dual-channel metering, the electricity provider shall
15    compensate the eligible customer for any excess
16    kilowatt-hour credits at the electricity provider's
17    avoided cost of electricity supply over the monthly period
18    or as otherwise specified by the terms of a power-purchase
19    agreement negotiated between the customer and electricity
20    provider.
21        (3) For all eligible net metering customers taking
22    service from an electricity provider under contracts or
23    tariffs employing hourly or time-of-use rates, any monthly
24    consumption of electricity shall be calculated according
25    to the terms of the contract or tariff to which the same
26    customer would be assigned to or be eligible for if the

 

 

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1    customer was not a net metering customer. When those same
2    customer-generators are net generators during any discrete
3    hourly or time-of-use period, the net kilowatt-hours
4    produced shall be valued at the same price per
5    kilowatt-hour as the electric service provider would
6    charge for retail kilowatt-hour sales during that same
7    time-of-use period.
8    (g) For purposes of federal and State laws providing
9renewable energy credits or greenhouse gas credits, the
10eligible customer shall be treated as owning and having title
11to the renewable energy attributes, renewable energy credits,
12and greenhouse gas emission credits related to any electricity
13produced by the qualified generating unit. The electricity
14provider may not condition participation in a net metering
15program on the signing over of a customer's renewable energy
16credits; provided, however, this subsection (g) shall not be
17construed to prevent an arms-length agreement between an
18electricity provider and an eligible customer that sets forth
19the ownership or title of the credits.
20    (h) Within 120 days after the effective date of this
21amendatory Act of the 95th General Assembly, the Commission
22shall establish standards for net metering and, if the
23Commission has not already acted on its own initiative,
24standards for the interconnection of eligible renewable
25generating equipment to the utility system. The
26interconnection standards shall address any procedural

 

 

HB2857- 230 -LRB103 25518 AMQ 51867 b

1barriers, delays, and administrative costs associated with the
2interconnection of customer-generation while ensuring the
3safety and reliability of the units and the electric utility
4system. The Commission shall consider the Institute of
5Electrical and Electronics Engineers (IEEE) Standard 1547 and
6the issues of (i) reasonable and fair fees and costs, (ii)
7clear timelines for major milestones in the interconnection
8process, (iii) nondiscriminatory terms of agreement, and (iv)
9any best practices for interconnection of distributed
10generation.
11    (h-5) Within 90 days after the effective date of this
12amendatory Act of the 102nd General Assembly, the Commission
13shall:
14        (1) establish an Interconnection Working Group. The
15    working group shall include representatives from electric
16    utilities, developers of renewable electric generating
17    facilities, other industries that regularly apply for
18    interconnection with the electric utilities,
19    representatives of distributed generation customers, the
20    Commission Staff, and such other stakeholders with a
21    substantial interest in the topics addressed by the
22    Interconnection Working Group. The Interconnection Working
23    Group shall address at least the following issues:
24            (A) cost and best available technology for
25        interconnection and metering, including the
26        standardization and publication of standard costs;

 

 

HB2857- 231 -LRB103 25518 AMQ 51867 b

1            (B) transparency, accuracy and use of the
2        distribution interconnection queue and hosting
3        capacity maps;
4            (C) distribution system upgrade cost avoidance
5        through use of advanced inverter functions;
6            (D) predictability of the queue management process
7        and enforcement of timelines;
8            (E) benefits and challenges associated with group
9        studies and cost sharing;
10            (F) minimum requirements for application to the
11        interconnection process and throughout the
12        interconnection process to avoid queue clogging
13        behavior;
14            (G) process and customer service for
15        interconnecting customers adopting distributed energy
16        resources, including energy storage;
17            (H) options for metering distributed energy
18        resources, including energy storage;
19            (I) interconnection of new technologies, including
20        smart inverters and energy storage;
21            (J) collect, share, and examine data on Level 1
22        interconnection costs, including cost and type of
23        upgrades required for interconnection, and use this
24        data to inform the final standardized cost of Level 1
25        interconnection; and
26            (K) such other technical, policy, and tariff

 

 

HB2857- 232 -LRB103 25518 AMQ 51867 b

1        issues related to and affecting interconnection
2        performance and customer service as determined by the
3        Interconnection Working Group.
4        The Commission may create subcommittees of the
5    Interconnection Working Group to focus on specific issues
6    of importance, as appropriate. The Interconnection Working
7    Group shall report to the Commission on recommended
8    improvements to interconnection rules and tariffs and
9    policies as determined by the Interconnection Working
10    Group at least every 6 months. Such reports shall include
11    consensus recommendations of the Interconnection Working
12    Group and, if applicable, additional recommendations for
13    which consensus was not reached. The Commission shall use
14    the report from the Interconnection Working Group to
15    determine whether processes should be commenced to
16    formally codify or implement the recommendations;
17        (2) create or contract for an Ombudsman to resolve
18    interconnection disputes through non-binding arbitration.
19    The Ombudsman may be paid in full or in part through fees
20    levied on the initiators of the dispute; and
21        (3) determine a single standardized cost for Level 1
22    interconnections, which shall not exceed $200.
23    (i) All electricity providers shall begin to offer net
24metering no later than April 1, 2008.
25    (j) An electricity provider shall provide net metering to
26eligible customers according to subsections (d), (d-5), and

 

 

HB2857- 233 -LRB103 25518 AMQ 51867 b

1(e). Eligible renewable electrical generating facilities for
2which eligible customers registered for net metering before
3January 1, 2025 shall continue to receive net metering
4services according to subsections (d), (d-5), and (e) of this
5Section for the lifetime of the system, regardless of whether
6those retail customers change electricity providers or whether
7the retail customer benefiting from the system changes. On and
8after January 1, 2025, any eligible customer that applies for
9net metering and previously would have qualified under
10subsections (d), (d-5), or (e) shall only be eligible for net
11metering as described in subsection (n).
12    (k) Each electricity provider shall maintain records and
13report annually to the Commission the total number of net
14metering customers served by the provider, as well as the
15type, capacity, and energy sources of the generating systems
16used by the net metering customers. Nothing in this Section
17shall limit the ability of an electricity provider to request
18the redaction of information deemed by the Commission to be
19confidential business information.
20    (l)(1) Notwithstanding the definition of "eligible
21customer" in item (ii) of subsection (b) of this Section, each
22electricity provider shall allow net metering as set forth in
23this subsection (l) and for the following projects, provided
24that only electric utilities serving more than 200,000
25customers as of January 1, 2021 shall provide net metering for
26projects that are eligible for subparagraph (C) of this

 

 

HB2857- 234 -LRB103 25518 AMQ 51867 b

1paragraph (1) and have energized after the effective date of
2this amendatory Act of the 102nd General Assembly:
3        (A) properties owned or leased by multiple customers
4    that contribute to the operation of an eligible renewable
5    electrical generating facility through an ownership or
6    leasehold interest of at least 200 watts in such facility,
7    such as a community-owned wind project, a community-owned
8    biomass project, a community-owned solar project, or a
9    community methane digester processing livestock waste from
10    multiple sources, provided that the facility is also
11    located within the utility's service territory;
12        (B) individual units, apartments, or properties
13    located in a single building that are owned or leased by
14    multiple customers and collectively served by a common
15    eligible renewable electrical generating facility, such as
16    an office or apartment building, a shopping center or
17    strip mall served by photovoltaic panels on the roof; and
18        (C) subscriptions to community renewable generation
19    projects, including community renewable generation
20    projects on the customer's side of the billing meter of a
21    host facility and partially used for the customer's own
22    load.
23    In addition, the nameplate capacity of the eligible
24renewable electric generating facility that serves the demand
25of the properties, units, or apartments identified in
26paragraphs (1) and (2) of this subsection (l) shall not exceed

 

 

HB2857- 235 -LRB103 25518 AMQ 51867 b

15,000 kilowatts in nameplate capacity in total. Any eligible
2renewable electrical generating facility or community
3renewable generation project that is powered by photovoltaic
4electric energy and installed after the effective date of this
5amendatory Act of the 99th General Assembly must be installed
6by a qualified person in compliance with the requirements of
7Section 16-128A of the Public Utilities Act and any rules or
8regulations adopted thereunder.
9    (2) Notwithstanding anything to the contrary, an
10electricity provider shall provide credits for the electricity
11produced by the projects described in paragraph (1) of this
12subsection (l). The electricity provider shall provide credits
13that include at least energy supply, capacity, transmission,
14and, if applicable, the purchased energy adjustment on the
15subscriber's monthly bill equal to the subscriber's share of
16the production of electricity from the project, as determined
17by paragraph (3) of this subsection (l). For customers with
18transmission or capacity charges not charged on a
19kilowatt-hour basis, the electricity provider shall prepare a
20reasonable approximation of the kilowatt-hour equivalent value
21and provide that value as a monetary credit. The electricity
22provider shall submit these approximation methodologies to the
23Commission for review, modification, and approval.
24Notwithstanding anything to the contrary, customers on payment
25plans or participating in budget billing programs shall have
26credits applied on a monthly basis.

 

 

HB2857- 236 -LRB103 25518 AMQ 51867 b

1    (3) Notwithstanding anything to the contrary and
2regardless of whether a subscriber to an eligible community
3renewable generation project receives power and energy service
4from the electric utility or an alternative retail electric
5supplier, for projects eligible under paragraph (C) of
6subparagraph (1) of this subsection (l), electric utilities
7serving more than 200,000 customers as of January 1, 2021
8shall provide the monetary credits to a subscriber's
9subsequent bill for the electricity produced by community
10renewable generation projects. The electric utility shall
11provide monetary credits to a subscriber's subsequent bill at
12the utility's total price to compare equal to the subscriber's
13share of the production of electricity from the project, as
14determined by paragraph (5) of this subsection (l). For the
15purposes of this subsection, "total price to compare" means
16the rate or rates published by the Illinois Commerce
17Commission for energy supply for eligible customers receiving
18supply service from the electric utility, and shall include
19energy, capacity, transmission, and the purchased energy
20adjustment. Notwithstanding anything to the contrary,
21customers on payment plans or participating in budget billing
22programs shall have credits applied on a monthly basis. Any
23applicable credit or reduction in load obligation from the
24production of the community renewable generating projects
25receiving a credit under this subsection shall be credited to
26the electric utility to offset the cost of providing the

 

 

HB2857- 237 -LRB103 25518 AMQ 51867 b

1credit. To the extent that the credit or load obligation
2reduction does not completely offset the cost of providing the
3credit to subscribers of community renewable generation
4projects as described in this subsection, the electric utility
5may recover the remaining costs through its Multi-Year Rate
6Plan. All electric utilities serving 200,000 or fewer
7customers as of January 1, 2021 shall only provide the
8monetary credits to a subscriber's subsequent bill for the
9electricity produced by community renewable generation
10projects if the subscriber receives power and energy service
11from the electric utility. Alternative retail electric
12suppliers providing power and energy service to a subscriber
13located within the service territory of an electric utility
14not subject to Sections 16-108.18 and 16-118 shall provide the
15monetary credits to the subscriber's subsequent bill for the
16electricity produced by community renewable generation
17projects.
18    (4) If requested by the owner or operator of a community
19renewable generating project, an electric utility serving more
20than 200,000 customers as of January 1, 2021 shall enter into a
21net crediting agreement with the owner or operator to include
22a subscriber's subscription fee on the subscriber's monthly
23electric bill and provide the subscriber with a net credit
24equivalent to the total bill credit value for that generation
25period minus the subscription fee, provided the subscription
26fee is structured as a fixed percentage of bill credit value.

 

 

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1The net crediting agreement shall set forth payment terms from
2the electric utility to the owner or operator of the community
3renewable generating project, and the electric utility may
4charge a net crediting fee to the owner or operator of a
5community renewable generating project that may not exceed 2%
6of the bill credit value. Notwithstanding anything to the
7contrary, an electric utility serving 200,000 customers or
8fewer as of January 1, 2021 shall not be obligated to enter
9into a net crediting agreement with the owner or operator of a
10community renewable generating project.
11    (5) For the purposes of facilitating net metering, the
12owner or operator of the eligible renewable electrical
13generating facility or community renewable generation project
14shall be responsible for determining the amount of the credit
15that each customer or subscriber participating in a project
16under this subsection (l) is to receive in the following
17manner:
18        (A) The owner or operator shall, on a monthly basis,
19    provide to the electric utility the kilowatthours of
20    generation attributable to each of the utility's retail
21    customers and subscribers participating in projects under
22    this subsection (l) in accordance with the customer's or
23    subscriber's share of the eligible renewable electric
24    generating facility's or community renewable generation
25    project's output of power and energy for such month. The
26    owner or operator shall electronically transmit such

 

 

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1    calculations and associated documentation to the electric
2    utility, in a format or method set forth in the applicable
3    tariff, on a monthly basis so that the electric utility
4    can reflect the monetary credits on customers' and
5    subscribers' electric utility bills. The electric utility
6    shall be permitted to revise its tariffs to implement the
7    provisions of this amendatory Act of the 102nd General
8    Assembly. The owner or operator shall separately provide
9    the electric utility with the documentation detailing the
10    calculations supporting the credit in the manner set forth
11    in the applicable tariff.
12        (B) For those participating customers and subscribers
13    who receive their energy supply from an alternative retail
14    electric supplier, the electric utility shall remit to the
15    applicable alternative retail electric supplier the
16    information provided under subparagraph (A) of this
17    paragraph (3) for such customers and subscribers in a
18    manner set forth in such alternative retail electric
19    supplier's net metering program, or as otherwise agreed
20    between the utility and the alternative retail electric
21    supplier. The alternative retail electric supplier shall
22    then submit to the utility the amount of the charges for
23    power and energy to be applied to such customers and
24    subscribers, including the amount of the credit associated
25    with net metering.
26        (C) A participating customer or subscriber may provide

 

 

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1    authorization as required by applicable law that directs
2    the electric utility to submit information to the owner or
3    operator of the eligible renewable electrical generating
4    facility or community renewable generation project to
5    which the customer or subscriber has an ownership or
6    leasehold interest or a subscription. Such information
7    shall be limited to the components of the net metering
8    credit calculated under this subsection (l), including the
9    bill credit rate, total kilowatthours, and total monetary
10    credit value applied to the customer's or subscriber's
11    bill for the monthly billing period.
12    (l-5) Within 90 days after the effective date of this
13amendatory Act of the 102nd General Assembly, each electric
14utility subject to this Section shall file a tariff or tariffs
15to implement the provisions of subsection (l) of this Section,
16which shall, consistent with the provisions of subsection (l),
17describe the terms and conditions under which owners or
18operators of qualifying properties, units, or apartments may
19participate in net metering. The Commission shall approve, or
20approve with modification, the tariff within 120 days after
21the effective date of this amendatory Act of the 102nd General
22Assembly.
23    (m) Nothing in this Section shall affect the right of an
24electricity provider to continue to provide, or the right of a
25retail customer to continue to receive service pursuant to a
26contract for electric service between the electricity provider

 

 

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1and the retail customer in accordance with the prices, terms,
2and conditions provided for in that contract. Either the
3electricity provider or the customer may require compliance
4with the prices, terms, and conditions of the contract.
5    (n) On and after January 1, 2025, the net metering
6services described in subsections (d), (d-5), and (e) of this
7Section shall no longer be offered, except as to those
8eligible renewable electrical generating facilities for which
9retail customers are receiving net metering service under
10these subsections at the time the net metering services under
11those subsections are no longer offered; those systems shall
12continue to receive net metering services described in
13subsections (d), (d-5), and (e) of this Section for the
14lifetime of the system, regardless of if those retail
15customers change electricity providers or whether the retail
16customer benefiting from the system changes. The electric
17utility serving more than 200,000 customers as of January 1,
182021 is responsible for ensuring the billing credits continue
19without lapse for the lifetime of systems, as required in
20subsection (o). Those retail customers that begin taking net
21metering service after the date that net metering services are
22no longer offered under such subsections shall be subject to
23the provisions set forth in the following paragraphs (1)
24through (3) of this subsection (n):
25        (1) An electricity provider shall charge or credit for
26    the net electricity supplied to eligible customers or

 

 

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1    provided by eligible customers whose electric supply
2    service is not provided based on hourly pricing in the
3    following manner:
4            (A) If the amount of electricity used by the
5        customer during the monthly billing period exceeds the
6        amount of electricity produced by the customer, then
7        the electricity provider shall charge the customer for
8        the net kilowatt-hour based electricity charges
9        reflected in the customer's electric service rate
10        supplied to and used by the customer as provided in
11        paragraph (3) of this subsection (n).
12            (B) If the amount of electricity produced by a
13        customer during the monthly billing period exceeds the
14        amount of electricity used by the customer during that
15        billing period, then the electricity provider
16        supplying that customer shall apply a 1:1
17        kilowatt-hour energy or monetary credit kilowatt-hour
18        supply charges to the customer's subsequent bill. The
19        customer shall choose between 1:1 kilowatt-hour or
20        monetary credit at the time of application. For the
21        purposes of this subsection, "kilowatt-hour supply
22        charges" means the kilowatt-hour equivalent values for
23        energy, capacity, transmission, and the purchased
24        energy adjustment, if applicable. Notwithstanding
25        anything to the contrary, customers on payment plans
26        or participating in budget billing programs shall have

 

 

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1        credits applied on a monthly basis. The electricity
2        provider shall continue to carry over any excess
3        kilowatt-hour or monetary energy credits earned and
4        apply those credits to subsequent billing periods. For
5        customers with transmission or capacity charges not
6        charged on a kilowatt-hour basis, the electricity
7        provider shall prepare a reasonable approximation of
8        the kilowatt-hour equivalent value and provide that
9        value as a monetary credit. The electricity provider
10        shall submit these approximation methodologies to the
11        Commission for review, modification, and approval.
12            (C) (Blank).
13        (2) An electricity provider shall charge or credit for
14    the net electricity supplied to eligible customers or
15    provided by eligible customers whose electric supply
16    service is provided based on hourly pricing in the
17    following manner:
18            (A) If the amount of electricity used by the
19        customer during any hourly period exceeds the amount
20        of electricity produced by the customer, then the
21        electricity provider shall charge the customer for the
22        net electricity supplied to and used by the customer
23        as provided in paragraph (3) of this subsection (n).
24            (B) If the amount of electricity produced by a
25        customer during any hourly period exceeds the amount
26        of electricity used by the customer during that hourly

 

 

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1        period, the energy provider shall calculate an energy
2        credit for the net kilowatt-hours produced in such
3        period, and shall apply that credit as a monetary
4        credit to the customer's subsequent bill. The value of
5        the energy credit shall be calculated using the same
6        price per kilowatt-hour as the electric service
7        provider would charge for kilowatt-hour energy sales
8        during that same hourly period and shall also include
9        values for capacity and transmission. For customers
10        with transmission or capacity charges not charged on a
11        kilowatt-hour basis, the electricity provider shall
12        prepare a reasonable approximation of the
13        kilowatt-hour equivalent value and provide that value
14        as a monetary credit. The electricity provider shall
15        submit these approximation methodologies to the
16        Commission for review, modification, and approval.
17        Notwithstanding anything to the contrary, customers on
18        payment plans or participating in budget billing
19        programs shall have credits applied on a monthly
20        basis.
21        (3) An electricity provider shall provide electric
22    service to eligible customers who utilize net metering at
23    non-discriminatory rates that are identical, with respect
24    to rate structure, retail rate components, and any monthly
25    charges, to the rates that the customer would be charged
26    if not a net metering customer. An electricity provider

 

 

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1    shall charge the customer for the net electricity supplied
2    to and used by the customer according to the terms of the
3    contract or tariff to which the same customer would be
4    assigned or be eligible for if the customer was not a net
5    metering customer. An electricity provider shall not
6    charge net metering customers any fee or charge or require
7    additional equipment, insurance, or any other requirements
8    not specifically authorized by interconnection standards
9    authorized by the Commission, unless the fee, charge, or
10    other requirement would apply to other similarly situated
11    customers who are not net metering customers. The customer
12    remains responsible for the gross amount of delivery
13    services charges, supply-related charges that are kilowatt
14    based, and all taxes and fees related to such charges. The
15    customer also remains responsible for all taxes and fees
16    that would otherwise be applicable to the net amount of
17    electricity used by the customer. Paragraphs (1) and (2)
18    of this subsection (n) shall not be construed to prevent
19    an arms-length agreement between an electricity provider
20    and an eligible customer that sets forth different prices,
21    terms, and conditions for the provision of net metering
22    service, including, but not limited to, the provision of
23    the appropriate metering equipment for non-residential
24    customers. Nothing in this paragraph (3) shall be
25    interpreted to mandate that a utility that is only
26    required to provide delivery services to a given customer

 

 

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1    must also sell electricity to such customer.
2    (o) Within 90 days after the effective date of this
3amendatory Act of the 102nd General Assembly, each electric
4utility subject to this Section shall file a tariff, which
5shall, consistent with the provisions of this Section, propose
6the terms and conditions under which a customer may
7participate in net metering. The tariff for electric utilities
8serving more than 200,000 customers as of January 1, 2021
9shall also provide a streamlined and transparent bill
10crediting system for net metering to be managed by the
11electric utilities. The terms and conditions shall include,
12but are not limited to, that an electric utility shall manage
13and maintain billing of net metering credits and charges
14regardless of if the eligible customer takes net metering
15under an electric utility or alternative retail electric
16supplier. The electric utility serving more than 200,000
17customers as of January 1, 2021 shall process and approve all
18net metering applications, even if an eligible customer is
19served by an alternative retail electric supplier; and the
20utility shall forward application approval to the appropriate
21alternative retail electric supplier. Eligibility for net
22metering shall remain with the owner of the utility billing
23address such that, if an eligible renewable electrical
24generating facility changes ownership, the net metering
25eligibility transfers to the new owner. The electric utility
26serving more than 200,000 customers as of January 1, 2021

 

 

HB2857- 247 -LRB103 25518 AMQ 51867 b

1shall manage net metering billing for eligible customers to
2ensure full crediting occurs on electricity bills, including,
3but not limited to, ensuring net metering crediting begins
4upon commercial operation date, net metering billing transfers
5immediately if an eligible customer switches from an electric
6utility to alternative retail electric supplier or vice versa,
7and net metering billing transfers between ownership of a
8valid billing address. All transfers referenced in the
9preceding sentence shall include transfer of all banked
10credits. All electric utilities serving 200,000 or fewer
11customers as of January 1, 2021 shall manage net metering
12billing for eligible customers receiving power and energy
13service from the electric utility to ensure full crediting
14occurs on electricity bills, ensuring net metering crediting
15begins upon commercial operation date, net metering billing
16transfers immediately if an eligible customer switches from an
17electric utility to alternative retail electric supplier or
18vice versa, and net metering billing transfers between
19ownership of a valid billing address. Alternative retail
20electric suppliers providing power and energy service to
21eligible customers located within the service territory of an
22electric utility serving 200,000 or fewer customers as of
23January 1, 2021 shall manage net metering billing for eligible
24customers to ensure full crediting occurs on electricity
25bills, including, but not limited to, ensuring net metering
26crediting begins upon commercial operation date, net metering

 

 

HB2857- 248 -LRB103 25518 AMQ 51867 b

1billing transfers immediately if an eligible customer switches
2from an electric utility to alternative retail electric
3supplier or vice versa, and net metering billing transfers
4between ownership of a valid billing address.
5(Source: P.A. 102-662, eff. 9-15-21.)
 
6    Section 25. The Environmental Protection Act is amended by
7changing Sections 3.131 and 9.15 as follows:
 
8    (415 ILCS 5/3.131)
9    Sec. 3.131. Clean energy. "Clean energy" means energy
10generation that is substantially free (90% or greater) of
11carbon dioxide emissions or is generated by a renewable energy
12resource as defined in Section 1-10 of the Illinois Power
13Agency Act.
14(Source: P.A. 102-662, eff. 9-15-21.)
 
15    (415 ILCS 5/9.15)
16    Sec. 9.15. Greenhouse gases.
17    (a) An air pollution construction permit shall not be
18required due to emissions of greenhouse gases if the
19equipment, site, or source is not subject to regulation, as
20defined by 40 CFR 52.21, as now or hereafter amended, for
21greenhouse gases or is otherwise not addressed in this Section
22or by the Board in regulations for greenhouse gases. These
23exemptions do not relieve an owner or operator from the

 

 

HB2857- 249 -LRB103 25518 AMQ 51867 b

1obligation to comply with other applicable rules or
2regulations.
3    (b) An air pollution operating permit shall not be
4required due to emissions of greenhouse gases if the
5equipment, site, or source is not subject to regulation, as
6defined by Section 39.5 of this Act, for greenhouse gases or is
7otherwise not addressed in this Section or by the Board in
8regulations for greenhouse gases. These exemptions do not
9relieve an owner or operator from the obligation to comply
10with other applicable rules or regulations.
11    (c) (Blank).
12    (d) (Blank).
13    (e) (Blank).
14    (f) As used in this Section:
15    "Carbon dioxide emission" means the plant annual CO2 total
16output emission as measured by the United States Environmental
17Protection Agency in its Emissions & Generation Resource
18Integrated Database (eGrid), or its successor.
19    "Carbon dioxide equivalent emissions" or "CO2e" means the
20sum total of the mass amount of emissions in tons per year,
21calculated by multiplying the mass amount of each of the 6
22greenhouse gases specified in Section 3.207, in tons per year,
23by its associated global warming potential as set forth in 40
24CFR 98, subpart A, table A-1 or its successor, and then adding
25them all together.
26    "Cogeneration" or "combined heat and power" refers to any

 

 

HB2857- 250 -LRB103 25518 AMQ 51867 b

1system that, either simultaneously or sequentially, produces
2electricity and useful thermal energy from a single fuel
3source.
4    "Copollutants" refers to the 6 criteria pollutants that
5have been identified by the United States Environmental
6Protection Agency pursuant to the Clean Air Act.
7    "Electric generating unit" or "EGU" means a fossil
8fuel-fired stationary boiler, combustion turbine, or combined
9cycle system that serves a generator that has a nameplate
10capacity greater than 25 MWe and produces electricity for
11sale.
12    "Environmental justice community" means the definition of
13that term based on existing methodologies and findings, used
14and as may be updated by the Illinois Power Agency and its
15program administrator in the Illinois Solar for All Program.
16    "Equity investment eligible community" or "eligible
17community" means the geographic areas throughout Illinois that
18would most benefit from equitable investments by the State
19designed to combat discrimination and foster sustainable
20economic growth. Specifically, eligible community means the
21following areas:
22        (1) areas where residents have been historically
23    excluded from economic opportunities, including
24    opportunities in the energy sector, as defined as R3 areas
25    pursuant to Section 10-40 of the Cannabis Regulation and
26    Tax Act; and

 

 

HB2857- 251 -LRB103 25518 AMQ 51867 b

1        (2) areas where residents have been historically
2    subject to disproportionate burdens of pollution,
3    including pollution from the energy sector, as established
4    by environmental justice communities as defined by the
5    Illinois Power Agency pursuant to the Illinois Power
6    Agency Act, excluding any racial or ethnic indicators.
7    "Equity investment eligible person" or "eligible person"
8means the persons who would most benefit from equitable
9investments by the State designed to combat discrimination and
10foster sustainable economic growth. Specifically, eligible
11person means the following people:
12        (1) persons whose primary residence is in an equity
13    investment eligible community;
14        (2) persons whose primary residence is in a
15    municipality, or a county with a population under 100,000,
16    where the closure of an electric generating unit or mine
17    has been publicly announced or the electric generating
18    unit or mine is in the process of closing or closed within
19    the last 5 years;
20        (3) persons who are graduates of or currently enrolled
21    in the foster care system; or
22        (4) persons who were formerly incarcerated.
23    "Existing emissions" means:
24        (1) for CO2e, the total average tons-per-year of CO2e
25    emitted by the EGU or large GHG-emitting unit either in
26    the years 2018 through 2020 or, if the unit was not yet in

 

 

HB2857- 252 -LRB103 25518 AMQ 51867 b

1    operation by January 1, 2018, in the first 3 full years of
2    that unit's operation; and
3        (2) for any copollutant, the total average
4    tons-per-year of that copollutant emitted by the EGU or
5    large GHG-emitting unit either in the years 2018 through
6    2020 or, if the unit was not yet in operation by January 1,
7    2018, in the first 3 full years of that unit's operation.
8    "Green hydrogen" means a power plant technology in which
9an EGU creates electric power exclusively from electrolytic
10hydrogen, in a manner that produces zero carbon and
11copollutant emissions, using hydrogen fuel that is
12electrolyzed using a 100% renewable zero carbon emission
13energy source.
14    "Large greenhouse gas-emitting unit" or "large
15GHG-emitting unit" means a unit that is an electric generating
16unit or other fossil fuel-fired unit that itself has a
17nameplate capacity or serves a generator that has a nameplate
18capacity greater than 25 MWe and that produces electricity for
19sale, including, but not limited to, coal-fired, coal-derived,
20oil-fired, and natural gas-fired, and cogeneration units,
21except cogeneration systems that are designed and operated to
22primarily serve on-site requirements.
23    "NOx emission rate" means the plant annual NOx total output
24emission rate as measured by the United States Environmental
25Protection Agency in its Emissions & Generation Resource
26Integrated Database (eGrid), or its successor, in the most

 

 

HB2857- 253 -LRB103 25518 AMQ 51867 b

1recent year for which data is available.
2    "Public greenhouse gas-emitting units" or "public
3GHG-emitting unit" means large greenhouse gas-emitting units,
4including EGUs, that are wholly owned, directly or indirectly,
5by one or more municipalities, municipal corporations, joint
6municipal electric power agencies, electric cooperatives, or
7other governmental or nonprofit entities, whether organized
8and created under the laws of Illinois or another state.
9    "SO2 emission rate" means the "plant annual SO2 total
10output emission rate" as measured by the United States
11Environmental Protection Agency in its Emissions & Generation
12Resource Integrated Database (eGrid), or its successor, in the
13most recent year for which data is available.
14    (g) All EGUs and large greenhouse gas-emitting units that
15use coal or oil as a fuel and are not public GHG-emitting units
16shall permanently reduce all CO2e and copollutant emissions to
17zero no later than January 1, 2030.
18    (h) All EGUs and large greenhouse gas-emitting units that
19use coal as a fuel and are public GHG-emitting units shall
20permanently reduce CO2e emissions to zero no later than
21December 31, 2045. Any source or plant with such units must
22also reduce their CO2e emissions by 45% from existing
23emissions by no later than January 1, 2035. If the emissions
24reduction requirement is not achieved by December 31, 2035,
25the plant shall retire one or more units or otherwise reduce
26its CO2e emissions by 45% from existing emissions by June 30,

 

 

HB2857- 254 -LRB103 25518 AMQ 51867 b

12038.
2    (i) All EGUs and large greenhouse gas-emitting units that
3use gas as a fuel and are not public GHG-emitting units shall
4permanently reduce all CO2e and copollutant emissions to zero,
5including through unit retirement or the use of 100% green
6hydrogen or other similar technology that is commercially
7proven to achieve zero carbon emissions, according to the
8following:
9        (1) No later than January 1, 2030: all EGUs and large
10    greenhouse gas-emitting units that have a NOx emissions
11    rate of greater than 0.12 lbs/MWh or a SO2 emission rate of
12    greater than 0.006 lb/MWh, and are located in or within 3
13    miles of an environmental justice community designated as
14    of January 1, 2021 or an equity investment eligible
15    community.
16        (2) No later than January 1, 2040: all EGUs and large
17    greenhouse gas-emitting units that have a NOx emission
18    rate of greater than 0.12 lbs/MWh or a SO2 emission rate
19    greater than 0.006 lb/MWh, and are not located in or
20    within 3 miles of an environmental justice community
21    designated as of January 1, 2021 or an equity investment
22    eligible community. After January 1, 2035, each such EGU
23    and large greenhouse gas-emitting unit shall reduce its
24    CO2e emissions by at least 50% from its existing emissions
25    for CO2e, and shall be limited in operation to, on average,
26    6 hours or less per day, measured over a calendar year, and

 

 

HB2857- 255 -LRB103 25518 AMQ 51867 b

1    shall not run for more than 24 consecutive hours except in
2    emergency conditions, as designated by a Regional
3    Transmission Organization or Independent System Operator.
4        (3) No later than January 1, 2035: all EGUs and large
5    greenhouse gas-emitting units that began operation prior
6    to the effective date of this amendatory Act of the 102nd
7    General Assembly and have a NOx emission rate of less than
8    or equal to 0.12 lb/MWh and a SO2 emission rate less than
9    or equal to 0.006 lb/MWh, and are located in or within 3
10    miles of an environmental justice community designated as
11    of January 1, 2021 or an equity investment eligible
12    community. Each such EGU and large greenhouse gas-emitting
13    unit shall reduce its CO2e emissions by at least 50% from
14    its existing emissions for CO2e no later than January 1,
15    2030.
16        (4) No later than January 1, 2040: All remaining EGUs
17    and large greenhouse gas-emitting units that have a heat
18    rate greater than or equal to 7000 BTU/kWh. Each such EGU
19    and Large greenhouse gas-emitting unit shall reduce its
20    CO2e emissions by at least 50% from its existing emissions
21    for CO2e no later than January 1, 2035.
22        (5) No later than January 1, 2045: all remaining EGUs
23    and large greenhouse gas-emitting units.
24    (j) All EGUs and large greenhouse gas-emitting units that
25use gas as a fuel and are public GHG-emitting units shall
26permanently reduce all CO2e and copollutant emissions to zero,

 

 

HB2857- 256 -LRB103 25518 AMQ 51867 b

1including through unit retirement or the use of 100% green
2hydrogen or other similar technology that is commercially
3proven to achieve zero carbon emissions by January 1, 2045.
4    (k) All EGUs and large greenhouse gas-emitting units that
5utilize combined heat and power or cogeneration technology
6shall permanently reduce all CO2e and copollutant emissions to
7zero, including through unit retirement or the use of 100%
8green hydrogen or other similar technology that is
9commercially proven to achieve zero carbon emissions by
10January 1, 2045.
11    (k-5) No EGU or large greenhouse gas-emitting unit that
12uses gas as a fuel and is not a public GHG-emitting unit may
13emit, in any 12-month period, CO2e or copollutants in excess of
14that unit's existing emissions for those pollutants.
15    (l) Notwithstanding subsections (g) through (k-5), large
16GHG-emitting units including EGUs may temporarily continue
17emitting CO2e and copollutants after any applicable deadline
18specified in any of subsections (g) through (k-5) if it has
19been determined, as described in paragraphs (1) and (2) of
20this subsection, that ongoing operation of the EGU is
21necessary to maintain power grid supply and reliability or
22ongoing operation of large GHG-emitting unit that is not an
23EGU is necessary to serve as an emergency backup to
24operations. Up to and including the occurrence of an emission
25reduction deadline under subsection (i), all EGUs and large
26GHG-emitting units must comply with the following terms:

 

 

HB2857- 257 -LRB103 25518 AMQ 51867 b

1        (1) if an EGU or large GHG-emitting unit that is a
2    participant in a regional transmission organization
3    intends to retire, it must submit documentation to the
4    appropriate regional transmission organization by the
5    appropriate deadline that meets all applicable regulatory
6    requirements necessary to obtain approval to permanently
7    cease operating the large GHG-emitting unit;
8        (2) if any EGU or large GHG-emitting unit that is a
9    participant in a regional transmission organization
10    receives notice that the regional transmission
11    organization has determined that continued operation of
12    the unit is required, the unit may continue operating
13    until the issue identified by the regional transmission
14    organization is resolved. The owner or operator of the
15    unit must cooperate with the regional transmission
16    organization in resolving the issue and must reduce its
17    emissions to zero, consistent with the requirements under
18    subsection (g), (h), (i), (j), (k), or (k-5), as
19    applicable, as soon as practicable when the issue
20    identified by the regional transmission organization is
21    resolved; and
22        (3) any large GHG-emitting unit that is not a
23    participant in a regional transmission organization shall
24    be allowed to continue emitting CO2e and copollutants
25    after the zero-emission date specified in subsection (g),
26    (h), (i), (j), (k), or (k-5), as applicable, in the

 

 

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1    capacity of an emergency backup unit if approved by the
2    Illinois Commerce Commission.
3    (m) No variance, adjusted standard, or other regulatory
4relief otherwise available in this Act may be granted to the
5emissions reduction and elimination obligations in this
6Section.
7    (n) By June 30 of each year, beginning in 2025, the Agency
8shall prepare and publish on its website a report setting
9forth the actual greenhouse gas emissions from individual
10units and the aggregate statewide emissions from all units for
11the prior year.
12    (o) Every 5 years beginning in 2025, the Environmental
13Protection Agency, Illinois Power Agency, and Illinois
14Commerce Commission shall jointly prepare, and release
15publicly, a report to the General Assembly that examines the
16State's current progress toward its renewable energy resource
17development goals, the status of CO2e and copollutant
18emissions reductions, the current status and progress toward
19developing and implementing green hydrogen technologies, the
20current and projected status of electric resource adequacy and
21reliability throughout the State for the period beginning 5
22years ahead, and proposed solutions for any findings. The
23Environmental Protection Agency, Illinois Power Agency, and
24Illinois Commerce Commission shall consult PJM
25Interconnection, LLC and Midcontinent Independent System
26Operator, Inc., or their respective successor organizations

 

 

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1regarding forecasted resource adequacy and reliability needs,
2anticipated new generation interconnection, new transmission
3development or upgrades, and any announced large GHG-emitting
4unit closure dates and include this information in the report.
5The report shall be released publicly by no later than
6December 15 of the year it is prepared. If the Environmental
7Protection Agency, Illinois Power Agency, and Illinois
8Commerce Commission jointly conclude in the report that the
9data from the regional grid operators, the pace of renewable
10energy development, the pace of development of energy storage
11and demand response utilization, transmission capacity, and
12the CO2e and copollutant emissions reductions required by
13subsection (i) or (k-5) reasonably demonstrate that a resource
14adequacy shortfall will occur, including whether there will be
15sufficient in-state capacity to meet the zonal requirements of
16MISO Zone 4 or the PJM ComEd Zone, per the requirements of the
17regional transmission organizations, or that the regional
18transmission operators determine that a reliability violation
19will occur during the time frame the study is evaluating, then
20the Illinois Power Agency, in conjunction with the
21Environmental Protection Agency shall develop a plan to reduce
22or delay CO2e and copollutant emissions reductions
23requirements only to the extent and for the duration necessary
24to meet the resource adequacy and reliability needs of the
25State, including allowing any plants whose emission reduction
26deadline has been identified in the plan as creating a

 

 

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1reliability concern to continue operating, including operating
2with reduced emissions or as emergency backup where
3appropriate. The plan shall also consider the use of renewable
4energy, energy storage, demand response, transmission
5development, or other strategies to resolve the identified
6resource adequacy shortfall or reliability violation.
7        (1) In developing the plan, the Environmental
8    Protection Agency and the Illinois Power Agency shall hold
9    at least one workshop open to, and accessible at a time and
10    place convenient to, the public and shall consider any
11    comments made by stakeholders or the public. Upon
12    development of the plan, copies of the plan shall be
13    posted and made publicly available on the Environmental
14    Protection Agency's, the Illinois Power Agency's, and the
15    Illinois Commerce Commission's websites. All interested
16    parties shall have 60 days following the date of posting
17    to provide comment to the Environmental Protection Agency
18    and the Illinois Power Agency on the plan. All comments
19    submitted to the Environmental Protection Agency and the
20    Illinois Power Agency shall be encouraged to be specific,
21    supported by data or other detailed analyses, and, if
22    objecting to all or a portion of the plan, accompanied by
23    specific alternative wording or proposals. All comments
24    shall be posted on the Environmental Protection Agency's,
25    the Illinois Power Agency's, and the Illinois Commerce
26    Commission's websites. Within 30 days following the end of

 

 

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1    the 60-day review period, the Environmental Protection
2    Agency and the Illinois Power Agency shall revise the plan
3    as necessary based on the comments received and file its
4    revised plan with the Illinois Commerce Commission for
5    approval.
6        (2) Within 60 days after the filing of the revised
7    plan at the Illinois Commerce Commission, any person
8    objecting to the plan shall file an objection with the
9    Illinois Commerce Commission. Within 30 days after the
10    expiration of the comment period, the Illinois Commerce
11    Commission shall determine whether an evidentiary hearing
12    is necessary. The Illinois Commerce Commission shall also
13    host 3 public hearings within 90 days after the plan is
14    filed. Following the evidentiary and public hearings, the
15    Illinois Commerce Commission shall enter its order
16    approving or approving with modifications the reliability
17    mitigation plan within 180 days.
18        (3) The Illinois Commerce Commission shall only
19    approve the plan if the Illinois Commerce Commission
20    determines that it will resolve the resource adequacy or
21    reliability deficiency identified in the reliability
22    mitigation plan at the least amount of CO2e and copollutant
23    emissions, taking into consideration the emissions impacts
24    on environmental justice communities, and that it will
25    ensure adequate, reliable, affordable, efficient, and
26    environmentally sustainable electric service at the lowest

 

 

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1    total cost over time, taking into account the impact of
2    increases in emissions.
3        (4) If the resource adequacy or reliability deficiency
4    identified in the reliability mitigation plan is resolved
5    or reduced, the Environmental Protection Agency and the
6    Illinois Power Agency may file an amended plan adjusting
7    the reduction or delay in CO2e and copollutant emission
8    reduction requirements identified in the plan.
9(Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    20 ILCS 3501/801-10
4    20 ILCS 3855/1-10
5    20 ILCS 3855/1-75
6    50 ILCS 65/15-10
7    220 ILCS 5/16-107.5
8    415 ILCS 5/3.131
9    415 ILCS 5/9.15